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Corium's (CORI) Shares Surge on Merger Agreement With Gurnet
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Corium International, Inc. announced that it has entered a definitive merger agreement with a private investment firm, Gurnet Point Capital. Per this agreement, Gurnet will acquire Corium and will also take the company private.
Per the terms of the deal, Gurnet will pay $12.50 for each share of Corium in cash, a 50% premium over the closing price of Corium’s share on Oct 10. The deal also offers additional 50 cents per share upon approval of Corium’s lead pipeline candidate, Corplex Donepezil, for treating Alzheimer’s disease. However, the additional amount will be paid if the approval comes before Mar 31, 2020. The total value of the transaction including the additional 50 cents stands at $504 million.
Following the closure of the deal, which is expected by the end of this year, Corium will become a private company fully-owned by Gurnet.
Corium plans to repurchase all of its outstanding convertible notes, valued at $120 million after the closing of the deal.
Corium’s share surged 52.8% on Oct 12 following the announcement. Shares of the company have rallied 32.1% so far this year against the industry’s decline of 2%.
The chief executive officer of Corium stated that the deal represents the best interests of the shareholders after evaluation of multiple partnership opportunities. Also, the deal provides the company with funds needed for regulatory approval and commercialization of Corplex Donepezil.
Corium is a commercial-stage biopharmaceutical company, focusing on developing specialty transdermal products. The company generated $18.5 million in revenues in the first nine months of 2018.
Gurnet has several decades of experience in the field of life sciences and healthcare, which will help Corium to develop novel drugs. Gurmet will also provide significant financial support to commercialize these drugs including dedicated sales team.
Roche (RHHBY - Free Report) and Biogen (BIIB - Free Report) have multiple pipeline candidates is several stages of development for the treatment of the disease. Allergan has an approved drug, Namenda, for the treatment of moderate-to-severe dementia of the Alzheimer’s type.
Several pharma companies have been unsuccessful in developing treatment for Alzheimer’s disease, including Merck, Pfizer and Lilly. All of them have discontinued further development.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Corium's (CORI) Shares Surge on Merger Agreement With Gurnet
Corium International, Inc. announced that it has entered a definitive merger agreement with a private investment firm, Gurnet Point Capital. Per this agreement, Gurnet will acquire Corium and will also take the company private.
Per the terms of the deal, Gurnet will pay $12.50 for each share of Corium in cash, a 50% premium over the closing price of Corium’s share on Oct 10. The deal also offers additional 50 cents per share upon approval of Corium’s lead pipeline candidate, Corplex Donepezil, for treating Alzheimer’s disease. However, the additional amount will be paid if the approval comes before Mar 31, 2020. The total value of the transaction including the additional 50 cents stands at $504 million.
Following the closure of the deal, which is expected by the end of this year, Corium will become a private company fully-owned by Gurnet.
Corium plans to repurchase all of its outstanding convertible notes, valued at $120 million after the closing of the deal.
Corium’s share surged 52.8% on Oct 12 following the announcement. Shares of the company have rallied 32.1% so far this year against the industry’s decline of 2%.
The chief executive officer of Corium stated that the deal represents the best interests of the shareholders after evaluation of multiple partnership opportunities. Also, the deal provides the company with funds needed for regulatory approval and commercialization of Corplex Donepezil.
Corium is a commercial-stage biopharmaceutical company, focusing on developing specialty transdermal products. The company generated $18.5 million in revenues in the first nine months of 2018.
Gurnet has several decades of experience in the field of life sciences and healthcare, which will help Corium to develop novel drugs. Gurmet will also provide significant financial support to commercialize these drugs including dedicated sales team.
Roche (RHHBY - Free Report) and Biogen (BIIB - Free Report) have multiple pipeline candidates is several stages of development for the treatment of the disease. Allergan has an approved drug, Namenda, for the treatment of moderate-to-severe dementia of the Alzheimer’s type.
Several pharma companies have been unsuccessful in developing treatment for Alzheimer’s disease, including Merck, Pfizer and Lilly. All of them have discontinued further development.
Corium International, Inc. Price
Corium International, Inc. Price | Corium International, Inc. Quote
Zacks Rank
Corium currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>