Zacks Investment Research downgraded shares of Trius Therapeutics (TSRX) from OUTPERFORM to NEUTRAL on August 06, 2013, with a target price of $13.50.
Cubist will acquire all outstanding shares of Trius for $13.50 per share in cash or approximately $707 million on a fully diluted basis. In addition to the upfront cash payment, each Trius stockholder will receive one Contingent Value Right (CVR), entitling the holder to receive an additional cash payment of up to $2.00 for each share they own if certain commercial sales milestones are achieved ($1.00 per share if net sales of tedizolid in the U.S., Canada and Europe are greater than or equal to $125 million in 2016 and up to an additional $1.00 per share, paid on a pro rata basis, for 2016 net sales between $125 million and $135 million). Thus, the total potential transaction is valued at up to $818 million on a fully diluted basis.
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