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Highlights
- BioDelivery (BDSI) has entered into a merger agreement with Collegium Pharmaceutical.
- Collegium will acquire all outstanding BDSI shares at US$5.60 per unit in an all-cash deal.
- The BDSI stock surged over 14% YTD.
Stocks of BioDelivery Sciences International, Inc. (NASDAQ:BDSI) jumped over 51% on Monday after the company announced its merger with Collegium Pharmaceutical, Inc. (NASDAQ:COLL).
The stock was up 51.65% to US$5.52 at 7:40 am ET on February 14. The COLL shares were trading at US$20.7535, up 17.98% at 9:41 am ET after the news.
On Monday, the North Carolina-based company said it entered into a definitive merger agreement with Collegium Pharmaceutical.
Collegium will acquire all outstanding shares of BDSI at US$5.60 per share in an all-cash deal,
representing a total equity value of around US$604 million on a fully diluted basis.
BioDelivery Sciences is a specialty pharmaceutical firm focusing on complex chronic disorders.
According to their joint press release, the boards of directors of both companies have unanimously approved the merger.
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Deal details
Under the agreement, Collegium Pharmaceutical will immediately begin a tender offer for acquiring all the outstanding shares of BDSI common stock at US$5.60 per share in cash, representing a 54% premium on BDSI’s closing price of US$364 on Friday. It also represents a premium of 65% over the 30 trading days volume-weighted average price of US$3.40.
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On the other hand, BioDelivery Sciences will file a recommendation statement that would contain its board's unanimous endorsement that BDSI shareholders tendered their shares to Collegium.
After the tender offer, Collegium will acquire all the remaining shares at US$5.60 per share through a second-step merger. The transaction will likely close in the first quarter of this year.
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BioDelivery Sciences CEO Jeff Bailey attributed the successful deal to the company's attractive portfolio and the brand's long-term value. He said that the deal would aid the firm in delivering benefits to patients while creating value for its shareholders. BioDelivery's financial advisor in the deal is Moelis & Company LLC, and the legal counsel is Goodwin Procter LLP.
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Bottomline
BDSI has a market cap of US$359.61 million. The company now expects its total revenue to be between US$165 million and US$167 million, compared to its previous forecast of US$162 million to US$167 million. The stock rose 14.11% YTD.
