Corium International shares soar on buyout deal with privately held Gurnet Point Capital

Corium International Inc (NASDAQ:CORI) shares climbed sharply on Friday after announcing a deal where it will be bought out by Gurnet Point Capital, a private investment company that is focused on the healthcare and life sciences sector, for more than $500 million.

In a statement, Corium said the transaction is structured as tender offer followed immediately by a merger. The deal was unanimously approved by Corium’s board of directors.

Under the terms of the merger agreement, Gurnet will pay $12.50 per share in cash upon the closing.

The news sParked a rally in Corium shares as they jumped 50.54% to trade at $12.51. The stock closed on Thursday 0.24% off at $8.31.

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The agreement between Corium and Gurnet also provides for a Contingent Value Right (CVR) of $0.50 per share that is payable based on the US Food and Drug Administration’s approval of Corium’s lead product candidate, Corplex Donepezil, for the treatment of Alzheimer’s disease, before March 31, 2020.

When the CVR payment is included, the transaction is valued at up to $504 million.

The total offer amount, including the CVR amount, represents a 42% premium over the 30-day volume-weighted average price of Corium’s stock.

The $12.50 per share closing amount represents a 50% premium over the closing price on October 10, 2018. After the transaction closes by the end of 2018, Corium will also offer to repurchase all of its $120 million in convertible notes. Corium will become a private company wholly owned by Gurnet.

Corium is a commercial-stage biopharmaceutical company. It is based in Menlo Park, California.

Reporting by Rene Pastor, contactable on [email protected]

Story by ProactiveInvestors