Evoke noted that the deal reflects the strategic value of Gimoti, the company’s nasal spray for the treatment of symptoms of acute and recurrent diabetic gastroparesis in adults.
- QOL Medical will buy Evoke for $11 per share, representing a premium of about 140% from the stock’s closing price on Monday.
- The transaction has been approved by the boards of both companies and is expected to close by the end of 2025.
- QOL Medical intends to finance the transaction with cash on hand.
Shares of Evoke Pharma, Inc. (EVOK) more than doubled on Tuesday after the company said that it has entered into a definitive agreement to be acquired by privately-held QOL Medical for $11 per share.
The purchase price represents a premium of about 140% from the stock’s closing price on Monday.
Following the announcement, EVOK shares shot up 134% by Tuesday afternoon to hit $10.72 as of the time of writing, but still remained below the deal price.
Terms Of The Deal
Florida-based QOL Medical will initiate a tender offer to acquire all outstanding shares of Evoke through a subsidiary. Once the tender offer is completed, a unit of QOL Medical will merge with Evoke.
The transaction has been approved by the boards of both companies and is expected to close by the end of 2025. QOL Medical intends to finance the transaction with cash on hand.
Evoke noted that the deal reflects the strategic value of Gimoti, the company’s nasal spray for the treatment of symptoms of acute and recurrent diabetic gastroparesis in adults. Diabetic gastroparesis is a chronic condition where the stomach takes too long to empty due to nerve damage caused by poorly controlled diabetes. Symptoms include nausea, vomiting, and bloating, among others.
The gastric delay caused by gastroparesis can compromise absorption of orally administered medications, and until approval of Gimoti, treatment was available only in oral and injectable formulations.
“GIMOTI strengthens our GI portfolio and advances our mission to support patients living with rare and underserved gastrointestinal conditions,” QOL Medical CEO Derick Cooper said.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around EVOK jumped from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume fell from ‘high’ to ‘normal’ levels.
A Stocktwits user applauded the stockholders.
EVOK stock is up by 143% this year and by 87% over the past 12 months.
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