Investors responded to the announcement with immediate enthusiasm, driving Universe Pharmaceuticals shares up 200% to $8.98 in after-hours trading on Friday. The rally provides a significant rebound for the stock, which had previously declined 22% over the year despite a 4.2% gain during the regular session.
In section Market Quotes
Universe Pharmaceuticals Acquires Best Praise in $10.8 Million Stock Deal
Universe Pharmaceuticals has reached an agreement to acquire Best Praise International Limited in an all-stock transaction valued at $10.8 million. The move, which involves issuing 4.8 million shares of common stock, aims to bolster the company’s intellectual property portfolio ahead of the deal's expected third-quarter closing.
The acquisition centers on five Chinese patents held by Best Praise that target neurodegenerative conditions and age-related diseases. By integrating these assets, Universe Pharmaceuticals intends to expand its research capabilities and commercialize new drug delivery technologies. Management noted that these patents align with their existing focus on elderly healthcare, opening doors for future co-development and licensing arrangements.
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