Cornerstone Therapeutics (CRTX) Closes $125M + Milestones Acquisition of EKR Therapeutics
Tweet Send to a FriendGet Alerts CRTX Hot Sheet
Trade CRTX Now!
Cornerstone Therapeutics Inc. (Nasdaq: CRTX) today announced the closing of its acquisition of EKR Therapeutics, Inc., a privately-held specialty pharmaceutical company focused on the acute-care hospital setting. Pursuant to the merger agreement, EKR Therapeutics will become a wholly owned subsidiary of Cornerstone.
With the completion of the acquisition, Cornerstone immediately assumes responsibility for the marketing and promotion of CARDENE I.V. (nicardipine hydrochloride), which is indicated for the short-term treatment of hypertension when oral therapy is not feasible or desirable. Cornerstone also acquired RETAVASE (Reteplase), which is indicated for use in the management of acute myocardial infarction (AMI) in adults, for the improvement of ventricular function following AMI, the reduction of the incidence of congestive heart failure and the reduction of mortality associated with AMI. Cornerstone is targeting FDA approval of a new active ingredient supplier and relaunch of RETAVASE to the market in 2013.
Cornerstone acquired EKR Therapeutics for an initial cash payment of approximately $125 million and additional payments contingent upon the achievement of certain milestones related to regulatory approval of a new active ingredient supplier for RETAVASE and sales of RETAVASE during approximately the first three years following commercial relaunch. As part of the EKR transaction, Cornerstone entered into a credit agreement with Chiesi Farmaceutici, S.p.A., its largest shareholder, in which Chiesi is providing a five-year Term Loan A of $60 million and a five-year Term Loan B of $30 million. The Term Loan B may be converted into common stock of Cornerstone at $7.098 per share at Chiesi's option at any time during the first 24 months following the closing of the credit arrangement.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
With the completion of the acquisition, Cornerstone immediately assumes responsibility for the marketing and promotion of CARDENE I.V. (nicardipine hydrochloride), which is indicated for the short-term treatment of hypertension when oral therapy is not feasible or desirable. Cornerstone also acquired RETAVASE (Reteplase), which is indicated for use in the management of acute myocardial infarction (AMI) in adults, for the improvement of ventricular function following AMI, the reduction of the incidence of congestive heart failure and the reduction of mortality associated with AMI. Cornerstone is targeting FDA approval of a new active ingredient supplier and relaunch of RETAVASE to the market in 2013.
Cornerstone acquired EKR Therapeutics for an initial cash payment of approximately $125 million and additional payments contingent upon the achievement of certain milestones related to regulatory approval of a new active ingredient supplier for RETAVASE and sales of RETAVASE during approximately the first three years following commercial relaunch. As part of the EKR transaction, Cornerstone entered into a credit agreement with Chiesi Farmaceutici, S.p.A., its largest shareholder, in which Chiesi is providing a five-year Term Loan A of $60 million and a five-year Term Loan B of $30 million. The Term Loan B may be converted into common stock of Cornerstone at $7.098 per share at Chiesi's option at any time during the first 24 months following the closing of the credit arrangement.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Liberty Global (LBTYA) Interested in Kabel Deutschland - FT
- Felcor Lodging Trst (FCH) to Sell Sheraton Suites Galleria in $21M Deal
- Icahn Proposes Dell (DELL) Start Offer for 1.1B Shares at $14/Share
Create E-mail Alert Related Categories
Corporate News, Mergers and Acquisitions
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
