BioDelivery Sciences International, Inc. (NASDAQ: ) is having an incredibly strong start to the trading session in the pre-market hours this morning after the company announced an agreement. As a result of the agreement, we will see some board changes that strengthen the company’s financial position, leading to excitement among investors and sending the stock screaming upward. Today, we’ll talk about:
- The agreement;
- what we’re seeing from BDSI as a result; and
- what we’ll be watching for ahead.
BDSI Climbs On Agreement
As mentioned above, BioDelivery Sciences is having an incredibly strong start to the trading session this morning after the company announced that it has entered into an agreement. In a press release, the company announced that it entered into an agreement with an affiliate of Broadfin Capital LLC that will reconstitute the company’s Board of Directors and provide an injection of funding, strengthening the company’s financial position.
Under the terms of the agreement, Kevin Kotler, Managing Partner at Broadfin, will join the BDSI Board of Directors. Two other members, Todd Davis and Peter Greenleaf, both with extensive pharmaceutical industry experience will also join the Board. In the release, the company informed investors that Mr. Davis served as Founder, Managing Partner, and President of RoyaltyRx Capital, LLC. Mr. Greenleafe is currently the CEO at Cerecor, Inc. (CERC) and has previously served as the CEO of Sucampo Pharmaceuticals (SCMP). In a statement, Kevin Kotler had the following to offer:
As a large BDSI stockholder, Broadfin is pleased to reach this agreement with BDSI that strengthens the company’s balance sheet and reconstitutes the board through the addition of three highly-qualified independent directors, each of whom will support BDSI’s positive commercial and strategic growth. Once appointed to the board, I look forward to working with newly appointed CEO Herm Cukier, my fellow directors and management to help build on the early commercial success of BELBUCA and enhance value for all stockholders.
The above statement was followed up by Frank E. O’Donnell, Jr. Chairman of the Board at BDSI. Here’s what he had to offer:
We look forward to the addition of Kevin, Peter and Todd to our board. The extensive pharmaceutical experience and track records of our new board members will be invaluable at this significant time for BDSI as we look to take our company to the next level behind BELBUCA. We believe that our agreement with Broadfin, our equity financing and the loan amendment with CRG validate our overall strategy and will support BDSI as we seek to drive sales of our products. Our entire board and all of the officers and employees of BDSI also want to thank Tom D’Alonzo, Barry Feinberg, Sam Sears and Tim Tyson for their dedication and contributions to BDSI during their respective tenures as directors.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the news proved to be overwhelmingly positive. After all, the new additions to the BioDelivery Sciences Board of Directors will add strength to the management team and likely lead to strong growth in the company. So, it’s no surprise that excited investors are sending the stock toward the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:12), BDSI is trading at $2.10 per share after a gain of $0.14 per share (7.44%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BDSI. In particular, we’re interested in following the story surrounding the company’s growth after the injection of 3 new, highly qualified members to its board of directors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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