Why Assertio Holdings (ASRT) Shares Are Falling Today - Assertio Holdings (NASDAQ:ASRT)

Assertio Holdings Inc ASRT will acquire Spectrum Pharmaceuticals Inc SPPI in an all-stock and contingent value rights (CVR) transaction.
Under the terms of the agreement, each Spectrum share will be exchanged for a fixed exchange ratio of 0.1783 shares of Assertio common, implying an upfront value of $1.14 per Spectrum share.
Additionally, Spectrum stockholders will receive one CVR per Spectrum share, entitling them to receive up to an additional $0.20 per share (approximately $43 million), payable in cash or stock at Assertio's election, for $1.34 (approximately $291 million), by the end of 2024 and 2025.
Also Read: After FDA Rejection, Spectrum Shelves Development On Poziotinib.
Following the close of the transaction, Assertio stockholders will own approximately 65% of the combined company, and Spectrum stockholders will own approximately 35% on a fully diluted basis.
"The addition of Spectrum's commercial capabilities and Rolvedon, a novel long-acting G-CSF product recently launched into a blockbuster market in October 2022, exemplifies Assertio's attractiveness as an acquirer of new, accretive assets across diverse therapeutic categories," Assertio's president and CEO Dan Peisert said.
The transaction is expected to be accretive to Assertio's adjusted EPS and operating cash flow in 2024.
Assertio intends to add operating costs of approximately $60 million annually.
Price Action: ASRT shares are down 19.5% at $5.15 on the last check Tuesday.

Assertio Scoops Up Spectrum Pharma In $248M Stock Deal