Innocoll Holdings PLC (NASDAQ:INNL) shares advanced 42.19% on Tuesday to $1.82 and an additional 62.09% to $2.95 in after-hours trading. Share prices have been trading in a 52-week range of $0.53 to $12.94. The company has a market cap of $54.14 million at 29.75 million shares outstanding.
Innocoll Holdings PLC is a commercial-stage specialty pharmaceutical and medical device company with late-stage development programs. It operates through the segment of manufacture and sale of collagen-based pharmaceutical products.
In particular, it utilizes collagen-based technology platform to develop its biodegradable and bioresorbable products and product candidates, which can be broken down by the body without the need for surgical removal or applied topically. Using its processes at its manufacturing facility, it derives and purifies bovine and equine collagen and then utilizes its technology platform to incorporate the purified collagen into its topical and implantable products. Its lead product candidates are XaraColl for the treatment of post-operative pain and Cogenzia for the treatment of diabetic foot infections. Its marketed products include CollaGUARD, Collatamp, Septocoll and RegenePro. It has initiated its Phase III efficacy trials for Cogenzia.
In a press release, healthcare investment fund Gurnet Point announced that they reached an agreement with Innocoll Holdings PLC on the terms of a recommended offer in which Gurnet Point will acquire Innocoll Holdings PLC for $1.75 per share in cash, and up to $4.90 in cash from a contingent value right for a total potential per share value of up to $6.65 or up to approximately $209 million in aggregate.
During this 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. This should be enough to provide it with the additional capital needed to prepare for the re-submission of the new drug application to the FDA.
“Having studied a number of strategic options over the past several months, our Board and management team believe this strategic transaction will give Innocoll access to the financial resources it needs to pursue its goals of bringing XARACOLL through its development to commercialization, and address important unmet medical needs in the post-operative pain market. We believe that the combined leadership of the two companies, supported by Gurnet Point’s financial strength, will better position Innocoll to pursue a successful filing and subsequent commercialization of XARACOLL,” said Jonathan Symonds, Chairperson of Innocoll Holdings PLC. “The Innocoll directors unanimously support the offer, which represents a significant premium to the recent share price. In addition, the CVR allows shareholders to participate in the continued development of XARACOLL without further investment.”
The company had expected to receive FDA approval of XaraColl this year but it had received a Refusal to File Letter from the FDA. According to this letter, the drug should be characterized as a drug-device combination product and that additional clinical and nonclinical information may be required.
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