LONDON (Alliance News) - International Biotechnology Trust PLC said Monday that it has written up the valuation of its unquoted portfolio company Convergence Pharmaceuticals Ltd by GBP4.4 million, after Biogen Idec Inc agreed to acquire it.
Biogen has agreed to acquire Convergence for a total of USD675 million, including an upfront payment of USD200 million, with further milestone payments that could total USD475 million. The trust said that it will receive USD3.2 million from the upfront payment, and may receive up to USD7.2 million from the further milestone based payments.
The increase in net asset value from the write up in valuation will be GBP4.0 million or 9.4 pence per share, International Biotechnology Trust said in a statement.
Shares in International Biotechnology Trust are trading up 2.1% at 476.70 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Int.biotech. (IBT)