Pharmaceutical firm BioDelivery Services International Inc. is set to open at a two-year high after the announcement of an acquisition by Collegium Pharmaceutical Inc., according to a filing.

  • Shares in BioDelivery have soared by double digits on Monday’s pre-market and are on track to reach the highest level in two years, after recording a 12.4% increase in the past three months.
  • Collegium said it would acquire BDSI for $5.60 per share in cash. BioDelivery’s commercial growth is mainly driven by its differentiated schedule III opioid product BELBUCA, which complements Collegium’s pain product portfolio.
  • Collegium will finance the transaction through existing cash on hand and a four-year $650-million loan from funds managed by Pharmakon Advisors LP. It expects to raise at least $75 million annually from the synergies.
  • The transaction is set to be finalized in the first quarter of the year, with Collegium acquiring any shares of BioDelivery not covered in the tender offer through a second-step merger.

Collegium Chief Executive Joe Ciaffoni said the acquisition will expand its pain offerings and will establish a foothold in neurology. BDSI is up 51.37% premarket, while COLL closed Friday down 0.23%.