Adamis Pharmaceuticals Gains 20% Following Acquisition Of US Compounding

Shares of Adamis Pharmaceuticals Corp ADMP gained more than 20 percent after Tuesday's market open after the company announced it has acquired US Compounding, Inc. However, after nearly 15 minutes of trading, shares of Adamis were higher by less than 5 percent on the day. US Compounding is a privately held company that holds the status as a drug compounding outsourcing facility with the U.S. Food and Drug Administration (FDA). The company provides prescription medications to patients, physician clinics, hospitals and surgery centers throughout the U.S. As part of the agreement, US Compounding will become a wholly-owned subsidiary of Adamis Pharmaceuticals. US Compounding investors will receive approximately 1.62 million shares of Adamis Pharmaceuticals. The transaction is expected to finalize in the second quarter of 2016. Dr. Dennis J. Carlo, President and CEO of Adamis, stated, "USC will be a compelling addition for Adamis. We believe the combination of revenues of $20 million or greater in each of the last two years, a large sales and marketing team and robust manufacturing capabilities, will be both synergistic with and accretive to Adamis' overall value. We expect the new division will generate at least $5 million in operating income over the first 12 months and achieve an annualized run rate of $50 million per year within 24 months after closing."