Innocoll Holdings Stock Surges 33% After Agreeing To Up To $209 Mln Acquisition By Gurnet Point

By Emma Court Markets MarketWatch Pulse

Innocoll Holdings PLC shares surged as much as 32.7% in morning trade Wednesday after the company said it had agreed to an acquisition of up to $209 million by healthcare investment fund Gurnet Point LP. The $209 million includes certain potential payments associated with the approval of Innocoll's Xaracoll product, which is intended for post-operative pain, in the next several years. Innocoll said the agreement, which includes a term loan of $10 million from Gurnet Point, would allow the company to continue to pursue approval for Xaracoll. Innocoll got a refusal to file letter from the Food and Drug Administration for the product in late December, which the regulator typically issues when it finds a drug application deficient. Innocoll said that the FDA characterizes Xaracoll as a drug-device combination product, meaning more clinical trials are required for approval. The company said it believes that the requisite studies could be done in time to re-submit a drug application by the end of this year, which would put Xaracoll on track to be sold by the end of 2018. Innocoll shares were valued at $2.26 as of Wednesday morning. Shares have surged 229.1% over the last three months, compared with a 4.6% rise in the S&P 500 .

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