Pain Mgt. Co. Makes $604M Bid for BioDelivery Sciences

Shares of BioDelivery Sciences International Inc. traded 52% higher after the company reported that it agreed to be acquired by Collegium Pharmaceutical Inc. in an all-cash deal for $5.60 per share.

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%).

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