Societal CDMO (NASDAQ:SCTL) stock is rocketing higher on Thursday after the pharmaceutical development and manufacturing company announced an acquisition agreement with CoreRx.
This agreement will have CoreRx acquiring Societal CDMO with a tender offer for SCTL shares. This has it planning to purchase SCTL stock for $1.10 per share in cash. That’s a roughly 97.9% premium over the closing price of SCTL shares on Wednesday.
David Enloe, CEO of Societal CDMO, said the following about the transaction with CoreRx:
“The enhanced CDMO that will be created through this transaction will be positioned to offer both existing and new customers strength in formulation development, early-stage production, clinical trial services, commercial-scale manufacturing, and a range of packaging services. The prospects for this combined entity to establish itself as a preferred CDMO partner in the small molecule space are bright and we look forward to the opportunity to contribute to the new company’s success.”
More SCTL Stock Acquisition Details
The board of directors at Social CDMO has already given its unanimous support to the deal with CoreRx. It’s also recommended that all shareholders take part in the tender offer. Once the offer closes, CoreRx intends to acquire all shares not offered for the same $1.10 price through a second-step merger.
Societal CDMO and CoreRx are expecting the tender offer to close in the second quarter of 2024. The two companies intend to complete their merger as soon as possible after this.
SCTL stock is up 132.6% as of Thursday morning, with some 400,000 shares changing hands. The company’s daily average trading volume is about half that.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
