Adamas Pharamceuticals Inc. (ADMS) stock prices were up by 2.22% as of the market closing on October 8th, 2021. This brought the price per share up to USD$4.61 at the end of the trading day. Subsequent premarket fluctuations have seen the stock surge by 70.93%, bringing it up to USD$7.88.
Agreement with Supernus
October 11th, 2021 saw ADMS stock announce having signed a definitive agreement with Supernus Pharmaceuticals. As per the agreement, Supernus will acquire the company through a tender offer. the offer is valued at USD$8.10 per share in chase, coming out to an aggregate of roughly USD$400 million. The amount is payable at closing and in two non-tradable contingent value rights (CVR). The two CVRs will be worth up to USD$1.00 per share for an aggregate of roughly USD$50 million. Cumulatively, the total consideration comes out to USD$9.10 per share in cash, for an aggregate of USD$450 million.
Details of the Transaction
The first CVR will be payable upon achieving net sales of GOCOVRI in the amount of USD$150 million. These sales must be achieved in any four consecutive quarters between the closing of the transaction and the end of 2024. The initial CVR will be worth USD$0.50 per share. The second CVR will also be valued at USD$0.50 per share. It will be awarded upon the achievement of net sales of GOCOVRI in the amount of USD$225 million over the course of any four consecutive quarters between the closing of the transaction and the end of fiscal 2025. The closing of the transaction is expected for the last quarter of fiscal 2021 or early in the first quarter of fiscal 2022.
ADMS Stock’s Treatments
The transaction will result in Supernus being provided by two marketed products. The first is the GOCOVRI extended release capsule, which is the first and only U.S. FDA-approved medicine that is indicated for the treatment of OFF and dyskinesia in patients suffering from Parkinson’s disease receiving levodopa-based therapy. The second treatment acquired by Supernus is the Osmolex ER extended release tablets. This treatment has been approved for the treatment of Parkinson’s disease and drug-induced extrapyramidal reactions in adult patients.
Future Outlook for ADMS Stock
The company is poised to capitalize on the expanded scope of opportunities afforded to it as a result of the transaction. ADMS stock is keen to ensure the continued proliferation of their proprietary treatments as a result of their collaboration. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value over the long term.