There is currently a rumor going around that Aytu Bioscience (AYTU) and Cerecor Inc. (CERC) could be in merger & acquisition talks. I dig deeper for evidence of the apparent merger.
According to a change of address filed by Cerecor Inc, their new address has been changed to Aytu Bioscience’s headquarters. Another reason why some people think that there could be a merger is because both companies is because both had filed for a direct offering on the same day.
Aytu Bioscience (AYTU) & Cerecor Inc. (CERC) merger could lead to partnerships with Janssen and Merck (MRK)
In August 2017, Cerecor sold to Janssen Pharmaceuticals, Inc. (“Janssen”) full rights to CERC-501 for initial gross proceeds of $25 million, as well as a potential future $20 million regulatory milestone payment. Under the terms of the agreement, Janssen will assume the ongoing clinical trials and be responsible for any new development and commercialization of CERC-501.
In April 2013, Cerecor entered into an exclusive worldwide license agreement with Merck to develop and commercialize CERC-301, an oral, NR2B specific NMDA receptor antagonist, for the prevention, diagnosis and/or treatment of human diseases. Under the terms of the agreement, Cerecor will be responsible for development and commercialization of CERC-301 and/or any product containing CERC-301. Merck will receive and upfront payment plus certain milestone payments and a percentage of net sales.
In March 2013, Cerecor entered into an exclusive worldwide license agreement with Merck pursuant to which Merck granted Cerecor rights to small molecule compounds known to inhibit COMT as its primary mechanism of action and any pharmaceutical product containing such compounds for the prevention, diagnosis and/or treatment of human diseases. Under the terms of the agreement, Merck is to receive an upfront licensing fee as well as milestones and tiered royalty payments. Cerecor assumes all responsibilities associated with development and commercialization of said compounds and/or products.
Aytu Bioscience (AYTU) files S-4 to merge with Cerecor Inc. (CERC)
According to a lastest filing from Aytu Bioscience, they filed an S-4 which is commonly used for mergers and acquisitions, so the fact that Cerecor Inc, filed and changed their address to Aytu Bioscience’s HQ address shows that this merger is evident.
Here is Aytu Bioscience’s prospectus summary:
Should you buy Aytu Bioscience or Cerecor Inc?
Shares of AYTU and CERC stocks, overall, appear to be a very good investment option, with Wall Street analysts expecting its price to rise considerably in the next several years. The majority of the metrics point to this investment being highly attractive.
