Tymlos maker Radius Health sells itself to investment firms for $890M

Earlier this year, when Radius Health reported its 2021 earnings, CEO Kelly Martin hinted at a big move for the company. 

“2022 is—absolutely—a pivotal year for the company,” Martin said in a press release at the time.

Four months later, the Massachusetts-based company has made those words prophetic, revealing that it has agreed to sell itself to two investment firms—Gurnet Point Capital of Massachusetts and Patient Square Capital of California.

The transaction is “valued at approximately $890 million,” Radius said in a release. Gurnet Point and Patient Square will offer to acquire all of the outstanding shares of Radius for $10 each plus a Contingent Value Right of $1 per share, which will be payable if osteoporosis drug Tymlos’ net sales reach $300 million during any 12-month period before the end of 2025.

The deal is expected to close in the third quarter of this year.

Radius Health reported revenue of $230 million last year, down from $239 million in 2020. The 19-year-old company’s flagship product Tymlos accounted for $219 million in sales last year, up from $208 million in 2020. The osteoporosis drug for postmenopausal women has been on the market for five years.

In response to the Thursday news, Radius’ shares jumped in price by 15%.

The sale came after a nine-month strategic review by the Radius board of directors and is intended to maximize shareholder value, the company said.

Following completion of the deal, Radius will become a private company and will no longer be subject to the reporting requirements of the SEC. Radius plans to maintain operations in the Boston and Wayne, Pennsylvania, areas, it said.