Why Cerecor Popped Over 40 Percent Today

11:46 11/29/2017

Baltimore based biotech company Cerecor Inc. CERC  saw its shares surge over 40 percent intraday. Most stocks in the market had a slow or red day, but today’s pop in shares of Cerecor could see some follow through momentum in Thursday’s session.

The company specializes in developing innovative therapies that make a difference in the lives of patients. One of its pipeline drugs is led by CERC-301, which Cerecor currently intends to explore as a novel treatment for orphan neurological indications.

The company recently announced leadership changes following the Company's recent acquisition of TRx Pharmaceuticals for up to $27 million in cash and common stock. TRx co-founders Randal O. Jones and Robert C. Moscato Jr. were appointed to the Cerecor Board of Directors, and Mr. Moscato will assume the roles of president and chief operating officer, effectively immediately. Concurrent with the new appointments, John Kaiser, interim chief executive officer, and Dr. Ronald Marcus, chief medical officer, resigned effective immediately.

Cerecor bought North Carolina based TRx Pharmaceuticals LLC, that was projected to do about $13 million in net sales this year.

According to the terms of the deal, Cerecor was to pay an initial $23 million for the purchase of TRx $18.9 million in cash and $4.1 million in Cerecor common stock. The firm was to also pay $4 million in common stock for the acquisition of Zylera Pharma Corp., a TRx subsidiary. TRx shareholders were eligible to receive up to an additional $7 million in contingent payments pending certain commercial milestones for the company.

Cerecor’s majority shareholder and board member Steven Boyd, said the acquisition will help the company in its shift towards a focus on pediatric health care.

The company also sold their major depressive and substance use disorder drug candidate CERC-501 for $25 million to Janssen Pharmaceuticals, Inc. in August.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read