Cardiome acquires Swiss drugmaker Correvio

Canada-based Cardiome Pharma (TSX: COM) said yesterday (November 19) that it has completed the acquisition of Correvio, a privately held pharmaceutical company headquartered in Geneva, Switzerland.

Under the terms of the deal, Cardiome has acquired 100% of Correvio through the purchase of a combination of assets and shares of its subsidiaries in exchange for 19.9% of Cardiome's outstanding shares (proforma ownership of around 16.6%) and a deferred cash consideration of $12 million. The deferred cash consideration will be repaid monthly at an amount equal to 10% of cash receipts from product sales and any applicable interest accrued at 10% compounded annually. The adjusted deferred cash consideration must be repaid in full by December 1, 2019.

Key benefits of the transaction include the following: