Cerulean Pharma Inc (NASDAQ:CERU)
Shares of Cerulean Pharma Inc (NASDAQ:CERU) more than doubled in market value after Dare Bioscience Chief Executive Officer Sabrina Martucci Johnson requested that shareholders approve a proposed merger. The stock was up by 143.69% in Wednesday’s trading session to end the day at $1.13 a share.
Cerulean Pharma Inc (NASDAQ:CERU) has also sought to accelerate the merger push by asking its shareholders to approve a sale of its dynamics Tumor Targeting Platform technology pursuant to a Novartis Asset Purchase Agreement. The company also wants shareholders to approve a reverse stock split at a ratio ranging from 10:1 to 20:1.
Cerulean Pharma Inc (NASDAQ:CERU) is a clinical stage company that specializes in the development of therapies in areas of oncology and other diseases. The company is currently working with Novartis Institute for Biomedical Research to develop nanoparticle-drug conjugates. Dare Bioscience bills itself as a healthcare company focused on developing and commercializing products for women’s reproductive health. Ovaprene, a novel non-hormonal contraceptive, will become the combined company’s lead candidate drug. The drug seeks to address an unmet need in the $19 billion a year contraception market.
On March 19, 2017, Cerulean Pharma Inc (NASDAQ:CERU) entered into a definitive agreement for the purchase Dare Biosciences issued and outstanding capital stock. The fate of the proposed merger rests in the hands of shareholders who are set to vote on the management proposal at the upcoming special meeting on July 19, 2017.
“As the founder and CEO of Dare Bioscience, Inc. (“Dare”), I am excited by the prospect of Dare combining with Cerulean Pharma Inc. (“Cerulean”). [..]. We believe a segment of this market is underserved, which gives us an opportunity to create value for stockholders,” said Mr. Johnson.
Cerulean Pharma Inc (NASDAQ:CERU) shareholders will own between 30% and 49% of the combined company upon the deal closing. The combined company will operate under the name Dare Bioscience Inc. under the leadership of Mr. Johnson as the CEO and Lisa Walters-Hoffert as the Chief Financial Officer. The board of directors will consist of William H. Rastetter, Susan L. Kelley, Roger L. Hawley, Robin J. Steele and Sabrina Martucci Johnson
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.