Micro-cap drugmaker Assertio jumps 17% after Garda sweetens takeover bid

Shares of micro-cap oncology and neurology drugmaker Assertio Holdings surged 17% on Monday to hit a multiyear high after the company said Garda Therapeutics had agreed to pay 21% more for it than initially planned just a month ago. Assertio said the increase followed the receipt of a superior acquisition proposal.

Shares of Assertio, whose market capitalization on the Nasdaq stands at just $139.5 million, jumped 17% on Monday to $21.60 per share. That marked their highest level since late October 2023.

Markets were reacting to news from the micro cap drugmaker that Garda Therapeutics had raised its acquisition offer by 21% to $21.80 per share. Under the original agreement signed in April, Garda had offered $18 per share.

Garda revised its bid for Assertio after the micro cap company received a superior proposal, according to a press release. The new offer from Garda Therapeutics also includes increased and fully-committed equity and debt financing commitments, Assertio said.

After reviewing all relevant materials, the board of the micro cap drugmaker concluded that Garda’s increased offer represents the most favorable outcome for Assertio shareholders.

The parties expect to complete the transaction in the second quarter. Under the terms of the deal, Garda will acquire Assertio through a tender offer priced at $21.80 per share in cash. It will then purchase the remaining stock at the same price through a second-step merger. After the transaction closes, the micro cap will no longer trade on the Nasdaq.

Assertio develops and markets therapies for neurological and oncology conditions, as well as anti-inflammatory and pain-management drugs. For 2025, the company reported a 3% decline in net product sales to $117.1 million. According to the press release, the decline was driven by lower sales of its anti-inflammatory drug Indocin amid competition from cheaper generic alternatives.

Shortly afterward, Assertio said it had sold the rights to Indocin and several other drugs to Cosette Pharmaceuticals for $35 million, as required under its agreement with Garda.

Assertio shares have surged more than 138% year to date. Following the original agreement with Garda in April, at least two Wall Street analysts downgraded the stock from “buy” to “hold.” Another analyst also maintains a “hold” rating, according to MarketWatch data. Assertio also has one remaining “buy” recommendation from analysts. The average target price on the stock stands at $22.60 per share, below Garda’s offer price.