Anatomy of a CVR: A Primer on the Key Components and Trends of CVRs in Life Sciences Public M&A Deals

In recent months, the life sciences industry has seen the reemergence of contingent value rights, or CVRs, in public company acquisitions as a way to bridge a valuation gap between buyers and sellers. Recent public deals with CVRs include AstraZeneca’s acquisition of CinCor Pharma completed in February 2023, French biopharmaceutical company Ipsen’s acquisition of Albireo Pharma completed in March 2023, and announcements in April 2023 of the pending acquisition by Assertio Holdings of Spectrum Pharmaceuticals and the pending acquisition by Shin Nippon Biomedical Laboratories of Satsuma Pharmaceuticals. Even in deals that ultimately do not include CVRs, they are frequently being discussed behind the scenes by buyers and sellers as a way to address a lack of alignment on valuation.