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Akebia Therapeutics, Keryx Biopharma To Merge - Quick Facts

Akebia Therapeutics, Inc. (AKBA) and Keryx Biopharmaceuticals, Inc. (KERX) announced a definitive merger agreement under which the companies will combine in an all-stock merger. Keryx shareholders will receive 0.37433 common shares of Akebia for each share of Keryx they own. The exchange results in implied equity ownership in the combined company of 49.4 percent for Akebia shareholders and 50.6 percent for Keryx shareholders on a fully-diluted basis.

John Butler, President and Chief Executive Officer of Akebia, is expected to lead the combined company, and Keryx will appoint the Chairperson of the Board of the combined company. Jason Amello, Akebia's Chief Financial Officer, is expected to serve in the same capacity on the management team of the combined company.

The merger of Akebia and Keryx creates a renal-focused company with an implied pro forma equity value of approximately $1.3 billion, assuming full conversion of Keryx's outstanding convertible notes. The combined company will be named Akebia Therapeutics, Inc.

The Baupost Group, which owns approximately 21.4 percent of the outstanding Keryx common stock, has agreed to convert its outstanding convertible notes of Keryx into shares of Keryx common stock prior to closing and has entered into a voting agreement in support of the transaction. Muneer Satter, Chairperson of the Akebia Board and a shareholder who owns approximately 5.3 percent of outstanding Akebia common stock, has also agreed to support the transaction.

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