CLEARWATER, Fla. - In a strategic move to expand its capabilities, CoreRx, Inc. has announced a definitive agreement to acquire Societal CDMO, Inc. (NASDAQ: SCTL), a contract development and manufacturing organization known for tackling complex formulation and manufacturing challenges.
The transaction is expected to close early in the second quarter of 2024, with CoreRx initiating a tender offer for all outstanding shares of Societal CDMO at $1.10 per share in cash.
This acquisition aims to create a comprehensive service provider with strengths ranging from early-stage formulation development to commercial manufacturing and packaging. Societal CDMO's board of directors has unanimously approved the deal and recommends that shareholders tender their shares.
The tender offer is contingent upon the majority of Societal CDMO's outstanding shares being tendered, along with other customary closing conditions. Following the tender offer's completion, CoreRx will conduct a second-step merger to acquire any remaining shares at the same price, which will not require a shareholder vote.
Societal CDMO's CEO, David Enloe, expressed confidence in the merger, stating that it will deliver substantial value to shareholders and bolster the company's position as a preferred CDMO partner in the small molecule space. He also acknowledged the contributions of the team to the company's success.
As the transaction progresses, Societal CDMO will continue to operate independently. Raymond James & Associates, Inc. serves as the financial advisor to Societal CDMO for this transaction.
CoreRx operates from two sites in Clearwater, Florida, and Bend, Oregon, and is recognized for its innovative drug formulation, development, and GMP manufacturing services.
Societal CDMO brings expertise in small molecules and provides a wide range of services from pre-IND development to commercial manufacturing and packaging from its facilities in Gainesville, Georgia, and San Diego, California.
This news article is based on a press release statement. Shareholders of Societal CDMO and other interested parties should note that the tender offer has not commenced as of the date of this communication, and they are advised to read the tender offer materials and the Solicitation/Recommendation Statement when they become available, as they will contain important information.
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