Acura shares tumble on 1-for-10 reverse split; inks licensing pact with King |
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Wed, 31 Oct 2007 19:32
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NEW YORK (Thomson Financial) - Acura Pharmaceuticals Inc. fell Wednesday after the company announced a 1-for-10 reverse stock split, and entered into a licensing agreement with King Pharmaceuticals Inc.The Palatine, Ill.-based developer of pharmaceutical products said it was instituting a reverse split in order to be listed on the American Stock Exchange, which requires a $3 a share minimum price, or the Nasdaq, which has a $4 minimum.The reverse split is scheduled to take effect on Dec. 5. Cash will be paid to shareholders who have fractional shares after the split.Acura also announced a licensing, development and commercialization agreement with King. The agreement covers products that use Acura's Aversion technology platform, which lowers the risk of addiction with pain medication.Under the terms of the agreement, King will make an upfront cash payment of $30 million to Acure, with subsequent payments upon meeting certain development and regulatory milestones. King will also reimburse Acura for all research and development costs, and pay a royalty ranging from 5% to 25% on any sales.King Pharmaceuticals is a manufacturer of pharmaceutical products based in Bristol, Tenn. Its stock rose 8 cents to $10.52 on Wednesday.Shares of Acura fell 24% to $1.50 on Wednesday.Ryan Vlastelicarv/vjCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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King signs licensing deal with Acura 