On Wednesday, shares of biopharmaceutical company CoLucid Pharmaceuticals are skyrocketing, up around 32% in midday trading after Eli Lilly and Co. announced it is buying the company for a whopping $960 million.
With the deal, Eli Lilly is gaining access to CoLucid’s experimental treatment for migraine, a large but under-treated condition that affects roughly 36 million Americans. Lilly has agreed to pay $46.50 per CLCD share, representing a premium of roughly 33% to the stock's Tuesday close.
CoLucid is currently developing a treatment called lasmiditan for acute migraine headaches. Lasmiditan comes in pill form, and works differently from the typical class of migraine treatment drugs known as triptans, which are the standard care for migraines today. A successful Phase III study of Lasmiditan was completed back in September, and a second Phase III study is expected this year. A U.S. regulatory filing for approval could happen in 2018 if the second study is also successful.
"We are excited that lasmiditan will be back at Lilly, where it was originally discovered, for the conclusion of phase III development and potential commercialization," said Thomas Mathers, CoLucid's CEO, in a statement. "We are proud of the work that CoLucid has done to develop lasmiditan, and we believe Lilly's expertise in pain and commitment to innovation are a natural fit to potentially bring this medicine to patients."
Goldman Sachs is acting as the exclusive financial advisor, and Weil, Gotshal & Manges LLP is acting as legal advisor to Lilly in the transaction. MTS Health Partners is acting as the exclusive financial advisor, and Faegre Baker Daniels LLP is acting as legal advisor to CoLucid.
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Here's Why CoLucid Pharma (CLCD) is Skyrocketing 32% Today
On Wednesday, shares of biopharmaceutical company CoLucid Pharmaceuticals are skyrocketing, up around 32% in midday trading after Eli Lilly and Co. announced it is buying the company for a whopping $960 million.
With the deal, Eli Lilly is gaining access to CoLucid’s experimental treatment for migraine, a large but under-treated condition that affects roughly 36 million Americans. Lilly has agreed to pay $46.50 per CLCD share, representing a premium of roughly 33% to the stock's Tuesday close.
CoLucid is currently developing a treatment called lasmiditan for acute migraine headaches. Lasmiditan comes in pill form, and works differently from the typical class of migraine treatment drugs known as triptans, which are the standard care for migraines today. A successful Phase III study of Lasmiditan was completed back in September, and a second Phase III study is expected this year. A U.S. regulatory filing for approval could happen in 2018 if the second study is also successful.
"We are excited that lasmiditan will be back at Lilly, where it was originally discovered, for the conclusion of phase III development and potential commercialization," said Thomas Mathers, CoLucid's CEO, in a statement. "We are proud of the work that CoLucid has done to develop lasmiditan, and we believe Lilly's expertise in pain and commitment to innovation are a natural fit to potentially bring this medicine to patients."
Goldman Sachs is acting as the exclusive financial advisor, and Weil, Gotshal & Manges LLP is acting as legal advisor to Lilly in the transaction. MTS Health Partners is acting as the exclusive financial advisor, and Faegre Baker Daniels LLP is acting as legal advisor to CoLucid.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>