This strategic acquisition marks a pivotal step towards creating a combined entity with expanded capabilities and a robust service offering that spans from early-stage formulation development through to commercial manufacturing and packaging.

Under the terms of the agreement, CoreRx will initiate a tender offer to purchase all outstanding shares of Societal CDMO for $1.10 per share in cash, reflecting the company’s commitment to delivering value to Societal CDMO shareholders. The board of directors of Societal CDMO has unanimously approved the transaction and recommends that all shareholders tender their shares in accordance with the offer.

Wayne Weisman, Executive Chairman of Societal CDMO, expressed his enthusiasm for the deal, stating, "This transaction with CoreRx represents a culmination of our efforts to maximize shareholder value following a comprehensive review process. We are excited about the potential of the combined entity to serve a broader customer base with an enhanced suite of services."

David Enloe, CEO of Societal CDMO, also commented on the future prospects of the merger, "Joining forces with CoreRx will empower us to leverage our combined strengths in formulation development, early-stage production, and commercial-scale manufacturing, among other areas. This is a testament to our team's hard work and the innovative solutions we have brought to the market. We are confident that this merger will not only benefit our shareholders but also strengthen our position as a preferred partner in the CDMO sector."

Transaction Details: The acquisition is set to commence with a cash tender offer by CoreRx for all the outstanding shares of Societal CDMO at $1.10 per share, subject to customary conditions and tax withholdings. The completion of the transaction is anticipated early in the second quarter of 2024, pending the tender of a majority of Societal CDMO’s outstanding shares and other customary closing conditions. Following the completion of the tender offer, a second-step merger will be executed to acquire any remaining shares of Societal CDMO at the same cash price, thereby consolidating the merger without requiring a vote from Societal CDMO shareholders.

Until the transaction is finalized, Societal CDMO will continue its operations as an independent entity. Raymond James & Associates, Inc. has been appointed as the financial advisor for Societal CDMO in this transaction, underscoring the strategic importance of this acquisition in the broader CDMO industry landscape. This merger is poised to create a formidable presence in the market, offering comprehensive solutions across the drug development and manufacturing spectrum.