Why Corium International Inc. Stock Is Skyrocketing Today

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

• 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.

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.

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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.