Corium Hopes Stock Offering Will Firm Its Footing In Pharma Partner Talks
May 25, 2017
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Wall Street wasn't too thrilled by Corium International Inc (NASDAQ: CORI )'s common stock offering. Corium offered 5.6 million shares priced at $6.25 per share and expected gross proceeds of about $35 million. Also revealed Thursday morning, Perceptive Advisors purchased nearly 2 million Corium shares at $6.25 per share. Shares plummeted more than 8 percent as investors may have interpreted the move as refutation of Corium’s previous pursuit of partnerships. CEO Peter Staple previously said he preferred to finance the biopharmaceutical's upcoming Corplex pivotal study through partnerships rather than stock offerings, the latter of which would dilute share value. See Also: Exclusive: Corium CEO Gives The Scoop On His Company's Latest Alzheimer's Data
However, spokeswoman Susan Pietropaolo confirmed that Thursday’s offering, although critical to clinical programs, isn't symptomatic of strategic deviations. "The financing provides Corium with greater options and flexibility as it expands its partnering discussions, which continue to be very active," Pietropaolo told Benzinga. "It provides sufficient cash for the company to support the donepezil pivotal study and preparations for the NDA filing, if we decide to proceed that far on our own, as well as advance past other key milestones in our business, such as the potential approval of the Twirla NDA." The funding may, in fact, lend leverage for future negotiations. "This financing puts us in an even stronger position to determine the best possible overall partnering arrangement for the company on our own terms and timing," said Pietropaolo. The Twirla NDA refers to a drug being developed by Agile Therapeutics Inc (NASDAQ: AGRX ), to which Corium is the exclusive provider. At time of publication, Corium shares were trading at $6.43, down 7.8 percent on the day. Taylor Cox contributed reporting. © 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.