Commercial-stage specialty pharmaceutical company BioDelivery Sciences International Inc. (BDSI:NASDAQ), which is focused on developing therapies addressing serious and debilitating chronic conditions, today announced it has entered into a definitive merger agreement to be acquired by Collegium Pharmaceutical Inc. (COLL:NASDAQ).
Under the terms of the agreement Collegium Pharmaceutical will purchase 100% of BioDelivery Sciences' outstanding shares for $5.60 per share in cash which on a fully diluted basis equates to a total equity value of about $604 million.
The report stated that the $5.60 per share offering price is 54% higher than BioDelivery Sciences' $3.64 closing share price on February 11, 2022 and in addition represents a 65% premium over BDSI's 30-day volume weighted average share price of $3.40.
The companies advised that the transaction is expected to close in Q1/22 and has already been unanimously approved by each firm's respective Board of Directors.
BioDelivery Sciences International's CEO Jeff Bailey commented, "We are pleased to announce the transaction with Collegium, which we view as a testament to the attractiveness of our portfolio and long-term value of our brands… Our team has worked diligently to grow our differentiated products. We believe that this transaction will deliver benefits to patients and prescribers and create significant value for our shareholders."
The agreement between the two companies requires Collegium to promptly proceed with making a cash tender offer to acquire all of BDSI's outstanding common shares. For the deal to go forward, a majority of BDSI's outstanding shares need to be tendered. The transaction also remains subject to ordinary closing conditions and regulatory waiting periods and approvals under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
BioDelivery Sciences International Inc. is a commercial-stage specialty pharmaceutical company based in Raleigh, N.C. that has put together a portfolio of differentiated pain and neurology products. The firm's products are designed to address serious and debilitating conditions such as chronic pain, acute migraine and opioid-induced constipation.
Collegium is a specialty pharmaceutical company headquartered in Stoughton, Mass. that focuses on abuse-deterrent, pain management. The company's commercial drug portfolio includes Xtampza ER, an extended-release oral formulation of oxycodone, and Nucynta ER and Nucynta IR, which are extended-release (ER) and immediate-release (IR) formulations of tapentadol.
BioDelivery Sciences began the day with a market cap of around $359.6 million with approximately 98.8 million shares outstanding and a short interest of about 2.8%. BDSI shares opened over 50% higher today at $5.53 (+$1.89, +51.92%) over Friday's $3.64 closing price and reached a new 52-week high price this morning of $5.58. The stock has traded today between $5.51 and $5.58 per share and is currently trading at $5.56 (+$1.92, +52.75%).
Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
