Clal, Hyperion deal

Hyperion will acquire Clal's Andromeda Biotech Ltd. subsidiary in a cash and stock deal. Clal will receive $12.5 million in cash and 312,869 Hyperion shares up front. The shares are valued at $8 million based on Hyperion's close of $25.61 on April 23, before the deal was announced. Clal is also eligible for up to $550 million in milestones plus tiered royalties on DiaPep277 sales ranging from a 10% royalty on annual worldwide net sales up to $300 million to a 17% royalty on sales that exceed $1.2 billion. The structure excludes sales by distributors in certain territories, in which the royalty will be 25%. Hyperion reported 2013 net product revenues of $42.2 million. The boards of Hyperion and Clal approved the deal, which is slated to close this quarter. ...