Investment fund to acquire Innocoll

Shares in Ireland-incorporated Innocoll Holdings (Nasdaq: INNL), a global pharmaceutical and medical device company, leapt more than 20% to $2.19 by close of trading yesterday, after it announced an agreement to be acquired.

Under the recommended offer, US healthcare investment fund Gurnet Point Capital will acquire Innocoll for $1.75 per share in cash, and up to $4.90 in cash from a contingent value right (CVR), for a total potential per share value of up to $6.65 or up to around $209 million in aggregate. The initial cash consideration of $1.75 represents a premium of approximately 120% to the closing price per Innocoll share on March 10, 2017, the last dealing day prior to the date on which the anomalous movement in Innocoll’s shares commenced (and a premium of about 28% to the closing price on March 15, 2017, the day prior to Innocoll initiating commencement of the offer period).

During the offer period, Gurnet Point plans to provide a term loan of $10 million to give Innocoll additional resources needed for the continued development of Xaracoll (bupivacaine HCl collagen-matrix implants) within the post-operative pain market. Innocoll believes that the loan will provide it with the additional capital needed to prepare for the re-submission of the Xaracoll New Drug Application (NDA) to the US Federal Drug Administration in order to achieve the milestones related to the CVR.