Cornerstone buys Critical Thera for $63M

North Carolina, USA-based Cornerstone BioPharma has launched an all-stock agreed takeover of Massachusetts-headquartered drug developer Critical Therapeutics, in a deal valuing the latter at around $63.0 million. The deal is expected to close in the fourth quarter and the merged firm will be called Cornerstone Therapeutics.

Following the transaction, Cornerstone's stockholders will own around 70% and those of CT will control about 30% of the combined company's common stock, after giving effect to shares issuable pursuant to outstanding Cornerstone options and warrants, but without giving effect to any shares issuable pursuant to outstanding CT options and warrants, the firms explained.

"The merger between Critical Therapeutics and Cornerstone creates a specialty pharmaceutical company focused on respiratory diseases," said Trevor Phillips, chief executive of CT. "It brings together Cornerstone's suite of products marketed to respiratory specialists with Critical Therapeutics' Zyflo CR (zileuton) extended-release tablets for the treatment of asthma. After reviewing alternatives during a strategic review process over the past six months, we believe that the product synergies created by a merger with Cornerstone offer the best opportunity to drive stockholder value," he added.