Alexza Pharmaceuticals and Grupo Ferrer announced today that the acquisition of Alexza was successfully completed. It was pretty close though, just 9,031,157 shares were tendered in the offer which is 41.5% of the outstanding shares. Only because Grupo Ferrer already owned a bit more than 10% of the outstanding shares was the 50% threshold – needed for the successful completion of the merger – met. So while I thought that the CVR was priced very cheap the market was perhaps correctly pricing a relative high probability of deal failure. It’s totally possible that I got a bit lucky here, but no real way to know for sure. How valuable the CVR will be is something that I won’t find out anytime soon. The first milestone will take 5 years while the last ones will take 15 years. More than a little bit of patience will be required!
I guess I’m technically now only long the ALXA CVRs