Cardiff MedTech Diurnal is set to be acquired in a deal which values the company at £48.3 million.

San Diego company Neurocrine has agreed the deal for Diurnal, subject to approval from London-listed Diurnal’s shareholders.

Under the terms of the acquisition, Diurnal shareholders would receive 27.5 pence in cash for each share, representing a premium of approximately 144% on the closing price of 11.25p on August 26th.

The firm’s market cap on that date was £19.1m.

Diurnal is targeting patient needs in chronic endocrine (hormonal) diseases. These primarily result from a deficiency of cortisol and testosterone. Its portfolio includes approved treatments for paediatric adrenal insufficiency (AI) and congenital adrenal hyperplasia (CAH). 

The company employs 33 people and for the six months ended 31st December 2021, reported product sales of £2.13m and a net loss of £7.95m. 

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Neurocrine, which has a workforce of 1,200, is dedicated to discovering and developing life-changing treatments for patients with under-addressed neurological, neuroendocrine and neuropsychiatric disorders. Its portfolio includes FDA-approved treatments for tardive dyskinesia (TD), Parkinson’s disease, endometriosis and uterine fibroids.

“The board of Diurnal is delighted to announce this recommended offer for Diurnal,” said Anders Härfstrand, non-executive chairman of Diurnal.

“Diurnal and Neurocrine are highly complementary businesses, and we believe that Neurocrine’s financial and operational resources will substantially accelerate the development of a leading franchise in diseases of cortisol deficiency, benefiting physicians and patients globally.

“We believe that the acquisition is compelling for Diurnal’s shareholders given the risks associated with achieving Diurnal’s vision of creating a profitable business, in particular the ongoing commercial roll out of Diurnal’s products in Europe and the execution of key clinical studies, in addition to the substantial shareholder dilution that is likely to result from accessing the capital required to deliver this vision.”

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