Privately held CoreRx Inc. will acquire Societal CDMO Inc SCTL, a contract development and manufacturing organization.
CoreRx on Wednesday said it will commence a tender offer to acquire all outstanding shares of Societal CDMO for $1.10 per share in cash.
“We are pleased to enter into this transaction with CoreRx, which delivers substantial value to our shareholders and is the outcome of a thorough review process overseen by the Societal CDMO board of directors,” said Wayne Weisman, executive chairman of Societal CDMO’s board of directors.
The transaction is expected to close early in the second quarter of 2024.
CoreRx is a CDMO providing drug formulation, development, and manufacturing to global pharmaceutical and biotech partners.
CoreRx operates from two sites: Its campus in Clearwater, Florida, and its Bend Bioscience campus in Bend, Oregon.
CoreRx delivers solutions to its partners focused on oral solids, liquids, and topicals, including enhanced formulations utilizing particle engineering-based drug delivery technologies and spray dry dispersion.
William Blair writes that a takeover appears increasingly probable due to Societal’s recent challenges and changes in the board of directors.
Long-term investors may feel some dissatisfaction with the takeover price despite its premium. The analyst anticipates the transaction to be complete without significant resistance or the emergence of another bidder.
Price Action: SCTL shares are up 132.6% at $1.07 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
