European Equities Traded in the US as American Depositary Fall in Wednesday Trading

ACNB Corp. ACNB has obtained requisite regulatory approvals or waivers to acquire Traditions Bancorp, Inc. and its wholly-owned subsidiary, Traditions Bank. The deal was announced in July.

The approval has been issued by the Federal Deposit Insurance Corporation and the Pennsylvania Department of Banking and Securities.

Details of the Acquisition Pursued by ACNB

ACNB announced an all-stock transaction worth $73.5 million to acquire Traditions Bancorp, with a termination fee of roughly 4% of the deal value.

Traditions Bancorp, established in 2002 and headquartered in York, PA, operates with eight full-service branches. It is a leading community bank in York County with the second-largest deposit market share.

Per the agreement, ACNB will issue 0.73 shares for each share of Traditions Bancorp’s common stock as of the closing date. The deal is expected to be closed on Feb. 1, 2025, subject to customary and shareholder approvals.

Further, upon the closing of the transaction, three directors from Traditions Bancorp will join the boards of ACNB and ACNB Bank, including chairman and CEO Eugene J. Draganosky, who will be designated as vice chairman.

Shareholders of both banks will be voting with regard to the proposed transaction in a special meeting to be held on Dec. 18, 2024.

ACNB’s Rationale Behind This Acquisition

ACNB is likely to benefit from expected cost savings of 35% of Traditions Bancorp’s non-interest expenses. Of this, 75% will be phased in 2025 and the rest will be realized thereafter.

The deal is anticipated to be 29.1% and 29.6% accretive to 2025 and 2026 earnings per share, respectively, assuming the execution of cost savings. Also, tangible book value is expected to be diluted by roughly 9.2% with a projected earn-back period of approximately 2.25 years.

Further, ACNB projects roughly 15.4% average tangible common equity and 1% return on average assets, and an internal rate of return of more than 15%.

This transaction aligns with ACNB’s multi-year strategic plan for inorganic growth while bolstering the potential for future organic growth. Further, Tradition Bancorp’s mortgage banking unit complements the company’s existing insurance and wealth management businesses, leading to higher non-interest income and loan growth.

Moreover, the deal meaningfully expands ACNB’s branch footprint in Lancaster County with a lower commercial real estate loan concentration and improves the deposit mix.

ACNB’s Zacks Rank & Price Performance

Year to date, shares of ACNB have risen 7.5% compared with the industry’s growth of 26%.

Ahead of World Diabetes Day, Doctors Without Borders/Médecins Sans Frontières (MSF) called for all insulin manufacturers to provide injection pen devices at $1 per pen.

The humanitarian organization emphasized that this would help ensure access to life-saving treatment for millions in low- and middle-income countries, where many struggle to afford diabetes care.

MSF highlighted that Eli Lilly And Co , Novo Nordisk A/S , and Sanofi SA , which dominate the global insulin market, have the power to set high prices that restrict access.

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According to MSF, data published in JAMA Network Open shows that insulin pens could be produced for as little as $0.94 per unit and remain profitable, yet current prices far exceed this figure.

For instance, a pen costs $1.99 in South Africa, $5.77 in India, $14.00 in the Philippines, and $90.69 in the U.S.

Dr. Helen Bygrave, an advisor for MSF's Access Campaign, underscored the disparity by recalling the initial intentions of the scientists who discovered insulin. "Over 100 years ago, they sold the patent for just $1 to ensure global access. Now, only about half of those who need insulin can access it," she said.

She stated that the corporate control by Eli Lilly, Novo Nordisk, and Sanofi has led to a "double standard" that hinders equitable diabetes treatment.

In July, the FDA rejected Novo Nordisk's BLA filing for the once-weekly insulin icodec.

Insulin pens, known for their dosing accuracy and user-friendly design, have been preferred by 82% of surveyed diabetes patients due to their convenience and less invasive administration compared to vials and syringes.

Recently, Novo Nordisk decided to cease insulin pen production to prioritize its GLP-1 medications for diabetes and obesity, like Ozempic and Wegovy.

This shift, motivated by profit margins in wealthier markets, could force many patients back to using syringes and vials.

South Africa, which transitioned to insulin pens in its public sector in 2014, recently faced a shortage that led to rationing when Novo Nordisk paused the supply of human insulin pens to the government.

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