Cumberland Pharmaceuticals Inc. (NASDAQ:CPIX) shares surged 80% on Thursday after the company announced a strategic deal with an affiliate of Apotex to combine their commercial operations.
Deal structure and terms
Under the agreement, Apotex will purchase Cumberland’s portfolio of branded pharmaceutical products for $100 million in cash. The transaction remains subject to approval by Cumberland’s shareholders.
Following completion, Cumberland will retain its development pipeline as well as its majority stake in Cumberland Emerging Technologies Inc., shifting its focus toward advancing its drug candidates.
CEO highlights strategic shift
“This transaction unlocks value for our shareholders and enables us to focus on the large market opportunities associated with our pipeline product candidates,” said A.J. Kazimi, Chief Executive Officer.
Focus on pipeline development
The Nashville-based company is advancing ifetroban, a thromboxane receptor antagonist, across several clinical programs targeting areas of unmet medical need.
Cumberland recently reported positive Phase II results for ifetroban in patients with cardiomyopathy linked to Duchenne muscular dystrophy. The therapy has received Orphan Drug, Rare Pediatric Disease, and Fast Track designations from the FDA.
Ongoing clinical programs
The company is also conducting a Phase II study of ifetroban in patients with Systemic Sclerosis, with enrollment complete and top-line results expected soon.
A third program is underway in Idiopathic Pulmonary Fibrosis, with patient enrollment ongoing at multiple medical centers across the United States.
Apotex expands U.S. footprint
Apotex, Canada’s largest pharmaceutical company, plans to incorporate Cumberland’s commercial business into its operations as part of efforts to strengthen its U.S. specialty medicines platform.