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ARTICLE | Company News

Paratek Pharmaceuticals Inc, Transcept deal

July 14, 2014 7:00 AM UTC

Infectious disease company Paratek will reverse-merge with Transcept in a stock deal. Transcept will issue Paratek stockholders about 167.5 million Transcept shares, valued at $333.3 million based on Transcept’s close of $1.99 on June 30, before the deal was announced. Paratek stockholders are expected to own about 89.6% of the outstanding capital of the combined company, while Transcept stockholders will retain the remaining 10.4%. As part of the deal, new investors, including The Baupost Group, Abingworth and other institutional investors; Transcept stockholders, including InterWest Ventures and Rournell Asset Management; and Paratek stockholders, including Omega Funds, HBM Healthcare Investments and Aisling Capital will invest about $93 million in the combined company.

Abingworth’s Michael Bigham was named chairman and CEO of Paratek, while Evan Loh will become president while remaining CMO. Paratek’s former CEO Denis Molnar will remain a member of the senior management team. They will retain these titles in the combined company. Transcept’s executive officers will resign from their positions after the merger. The combined company will have a seven-member board of which two will be designated by Transcept and five will be designated by Paratek prior to closing. The combined company will operate under the name Paratek Pharmaceuticals Inc. and Transcept plans to change its ticker to “PRTK.” ...