Is Opiant Pharmaceuticals (OPNT) stock rising on acquisition news?

Highlights:

• The OPNT stock soared over 115 per cent on Monday.
• The company reported its Q3 FY22 earnings results on November 14.
• Opiant Pharmaceuticals entered into a definitive merger agreement to be acquired by another pharmaceutical company.

The stocks of the biopharmaceutical firm, Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) were among the top percentage gainers on Wall Street Monday.

The stocks of the company were up over 115 per cent soon after the trading commenced on Monday, November 14, after the company reported its latest quarter earnings.

In addition to that, the company also announced entering into a definitive merger agreement to be acquired by another pharmaceutical company.

So, let's look at the acquisition details, and its financial highlights for the latest quarter, before exploring its recent stock performance:

Why is it rising?

Opiant Pharmaceuticals is a biopharmaceutical firm that develops therapeutics for addiction and drug overdose through its intranasal and injectable delivery solutions.

The Santa Monica-based company said on November 14, that it entered into a definitive merger agreement with Indivior Inc.

Indivior Inc is a subsidiary of the Chesterfield-based specialty pharmaceutical firm, Indivior PLC (LON:INDV). According to the agreement terms, Indivior would acquire all the outstanding shares of Opiant Pharmaceuticals for an upfront consideration of US$ 20 per share in cash.

In addition, if achieved, it could pay contingent value rights (CVR) representing potential additional payments over seven years of as much as US$ 8 per share.

The achievements of the CVR payment would depend on certain revenue accomplishments for Opiant Pharmaceuticals' investigational treatment, OPNT003.

Meanwhile, the US$ 104.83 million market cap company reported a revenue of US$ 0.2 million in Q3 FY22, as compared to US$ 16.3 million in the year-ago period. Opiant Pharmaceuticals' net loss was US$ 9.91 million for the period, versus an income of US$ 3.41 million in Q3 FY21.

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Bottom line:

The price of the OPNT stock was US$ 20.24 at 9:34 am ET on November 14, up 115.32 per cent, while its trading volume was 295,147 at the same time. The stock closed at US$ 9.5 on November 11.

The upfront payment of US$ 20 per share represents a premium of around 111 per cent to Opiant Pharmaceuticals’ closing price of November 11 and a 99 per cent premium to the 30-day volume-weighted average price.