What happened

Shares of Corium International (NASDAQ:CORI), a commercial-stage biopharmaceutical company focused on transdermal and transmucosal delivery systems, were up 50% as of 11:10 a.m. EDT on Friday. The enormous jump is a response to the news that the company has accepted a buyout offer. 

So what

Corium has agreed to sell itself to Gurnet Point Capital (GPC).

Here are the must-know details of the transaction:
  • The deal is worth up to $504 million.
  • GPC has agreed to pay $12.50 per share at closing. It will also pay an additional $0.50 in contingent value rights if Corium's lead product candidate Corplex Donepezil receives Food and Drug Administration approval before March 31, 2020.
  • The deal is expected to close by the end of the year. 
  • Corium's board has unanimously approved the transaction.
  • Essex Woodlands, Corium's largest stockholder, has agreed to support the transaction.
BUsinessmen shaking hands and exchanging money

Image source: Getty Images.

Here's the explanation that Corium CEO Peter Staple offered investors:

"After an extensive evaluation of potential partnering opportunities, we concluded that the value and certainty provided in the proposed transaction is in the best interests of Corium's shareholders, and provides Corium with the financial and other resources needed to bring Corplex Donepezil through regulatory approval and commercialization. Our management, R&D, and product manufacturing teams look forward to working with GPC as we prepare to submit our regulatory application for Corplex Donepezil, and extend our leadership position in developing new transdermal products that address significant patient need."

Now what

The deal is being made in cash and already has the support of Corium's board and its largest shareholder, so the chance of it going through appears to be very likely.

Shareholders need to decide for themselves whether or not they want to sell today or hang on to get their hands on the contingent value rights that are a part of the deal. Either way, they should still take a victory lap and begin the search for other promising companies to buy. 

Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.