Shares of Cerulean Pharma Inc (NASDAQ:CERU) collapsed this morning, down nearly 65%, after investors learned that the company has sold certain assets for $7.5 million in conjunction with a stock purchase deal with Daré Bioscience.
Cerulean has also entered into two agreements for the sale of assets, the proceeds of which will be used to help fund the combined company’s operations. Cerulean sold its clinical product candidates, CRLX101 and CRLX301, for $1.5 million to BlueLink Pharmaceuticals, a subsidiary of NewLink Genetics Corporation, a biopharmaceutical company engaged in the discovery, development and commercialization of novel immuno-oncology product candidates to improve the lives of patients with cancer. Cerulean also entered into an agreement with Novartis, an existing collaborator with the Company, pursuant to which Novartis will acquire all rights to Cerulean’s Dynamic Tumor Targeting™ Platform for $6 million. The closing of the sale to Novartis is subject to approval of the sale by holders of at least a majority of the outstanding shares of Cerulean’s common stock and satisfaction of other closing conditions.
“Cerulean conducted an extensive review of strategic alternatives with the goal of maximizing value for our stockholders,” said Christopher D. T. Guiffre, President & Chief Executive Officer of Cerulean. “We believe the Daré transaction, in conjunction with the asset sales, achieves this goal and provides Cerulean stockholders with an exciting opportunity in women’s health under an experienced leadership team. Based on Daré’s current projections, with proceeds from the sale of Cerulean’s assets, we believe the combined company will be well funded to advance Ovaprene through the completion of a postcoital proof of concept study that is expected to be a value inflection point and is expected to commence following closing of this transaction.”
Cerulean Pharma, Inc. is a clinical-stage, oncology-focused company, which provides proprietary Dynamic Tumor Targeting Platform to develop differentiated therapies. It specializes in the design and development of nanopharmaceuticals. Cerulean’s nanopharmaceuticals are drug-containing nanoparticles designed and optimized to enhance therapeutic agents, ranging from small molecules to therapeutic peptides and RNAi molecules.