Chiesi Agrees $1.9B KalVista Deal at $27 Per Share as Citigroup Downgrades
Chiesi Group will acquire KalVista Pharmaceuticals for $27.00 per share in cash, valuing the company at about $1.9 billion. Citigroup downgraded the stock to Market Perform despite EKTERLY’s launch generating nearly $50 million in revenue and pushing shares to a 52-week high.
1. Citigroup Downgrades Stock
Citigroup revised its rating on KalVista Pharmaceuticals from Outperform to Market Perform, indicating expectations that the stock will track the broader market. The decision followed a period of share price strength but reflected caution about near-term upside.
2. Chiesi Acquisition Terms
Chiesi Group agreed to purchase KalVista for $27.00 per share in cash, valuing the total deal at approximately $1.9 billion. Both companies’ boards approved the transaction unanimously, aiming to bolster Chiesi’s rare disease portfolio.
3. Legal Investigation of Sale Fairness
A law firm launched an investigation into whether KalVista’s board secured the best possible price for shareholders and conducted a fair sales process. The probe examines potential conflicts of interest and adequacy of disclosures.
4. EKTERLY Launch Performance
KalVista’s new oral drug EKTERLY has generated nearly $50 million in revenue in its first six months, driving the stock to a 52-week high of $26.70. This strong launch underscores the drug’s market potential in treating hereditary angioedema attacks.