Once a small drug company, dreamed of being the next Merck or Pfizer. Now, they seem to have lowered their sights to just buy them.
On Monday, Adolor Corp became the Philadelphia-area life sciences companies to back the latest hugs from large companies cash-flush.
USA based Adolor, who sells drugs called Entereg, will be acquired with Cubist Pharmaceuticals Inc for $ 4.25 per share in cash, plus the promise of up to $ 4.50 per share more specific milestones to Adolor met. Transaction valued at $ 190 million initially, up to $ 415 million potentially.
It is the purchase price is quite good for a company that has produced only operating losses since its establishment in November 1994. Adolor has piled up accumulated deficit of $ 539 million as of June 30.
Cubist and Adolor uncorked agreement before the stock market opened. Adolor shares shot higher at the beginning and closing at $ 4.67-143 percent, or $ 2.75, from Friday's final $ 1.92. The price is still well below the initial public offering price of $ 15 in 2000.