Icosavax deal CVR based on FDA approval for IVX-A12, sales in EU, UK, Canada

The $5 a share contingent value right in Astrazeneca’s (NASDAQ:AZN) planned $1.1 billion purchase of Icosavax (NASDAQ:ICVX) is based on FDA approval of RSV vaccine candidate IVX-A12 and some sales metrics.

The $4 a share CVR is based on the FDA approving IVX-A12, any vaccine incorporating IVX-A12 or any vaccine covered by the company’s patent rights prior ot the sixth anniversary of the effective time of the merger, according to a filing late Tuesday.

The $1 per share CVR is based on if a selling entity achieves $200 million in net sales of all products in the European Union, United Kingdom, and Canada prior to the seventh anniversary of the effective time of the merger.

AstraZeneca earlier agreed to acquire U.S. vaccine developer Icosavax (ICVX) in a deal valued at up to $1.1 billion. The deal values Icosavax at $15/share in cash at closing, plus a non-tradeable CVR or up to $5/share in cash if certain milestones are met.

Icosavax (ICVX) shares surged 50% of the deal announcement on Tuesday.