SurModics plunges to new 52-week low as Merck cancels partnership
SurModics Inc. (Nasdaq:SRDX) sank to a new 52-week low this morning, losing nearly one-quarter of its value after the company announced drug giant Merck & Co. Inc. canceled a partnership the two had signed in June 2007.
Eden Prairie, Minn.-based SurModics, a provider of drug delivery technologies, said Wednesday afternoon that Merck had opted to discontinue the license and research collaboration agreement the two companies had signed last year.
Merck’s decision triggers an additional $9 million payment to SurModics from Merck.
Merck changed its mind following a strategic review of its business and product development portfolio, according to SurModics, and was not based on any concerns about the safety or efficacy of SurModics’ drug delivery systems.
By mid-morning Surmodics is at $29.95, down $9.16, after having dropped as low as $28.05 earlier in the day. Previously, the stock had ranged between $36.25 and $56.75 during the past 52 weeks.
More than 640,000 shares had changed hands compared with an average three-month volume of 137,851.
For detailed price information and news stories on SurModics, click SRDX.
