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      What Sparked Rise In Cerevel (CERE) Amid Insider Selling

      By Fahim Awan

      Published on

      December 8, 2023

      1:47 PM UTC

      What Sparked Rise In Cerevel (CERE) Amid Insider Selling

      Cerevel Therapeutics Holdings, Inc. (NASDAQ: CERE) witnessed a noteworthy ascent of 11.37%, reaching $41.13 during the latest trading session on the US stock charts. Despite reports of insider selling activities, the surge in Cerevel stock was primarily catalyzed by a takeover bid.

      In a filing submitted to the Securities and Exchange Commission (SEC) last Thursday, Akamine Scott, the Chief Legal Officer of Cerevel (CERE), divested 17,500 shares of CERE. The transaction, conducted at an average selling price of $38.185, yielded gross proceeds totaling $676,200.

      CERE made a significant announcement yesterday, unveiling a definitive agreement with AbbVie Inc. According to the terms of the agreement, AbbVie will acquire Cerevel Therapeutics, encompassing its robust neuroscience pipeline with multiple clinical-stage assets. The acquisition extends to CERE’s preclinical candidates, exhibiting potential applications in various diseases, including schizophrenia, Parkinson’s disease (PD), and mood disorders.

      This strategic move complements AbbVie’s existing neuroscience portfolio, introducing a diverse array of potentially best-in-class assets that may revolutionize standards of care in psychiatric and neurological disorders with substantial unmet needs. One of Cerevel’s notable late-stage drugs, emraclidine, a positive allosteric modulator of the muscarinic M4 receptor, has demonstrated promise as a next-generation antipsychotic for treating schizophrenia, evidenced by positive Phase 1b results.

      Emraclidine is currently undergoing Phase 2 trials, offering potential benefits in Alzheimer’s disease and PD. The company’s portfolio also includes tavapadon for Parkinson’s (Phase 3), CVL-354 (Phase 1) for major depressive disorder, and darigabat (Phase 2) for treatment-resistant epilepsy and panic disorder. These assets align seamlessly with AbbVie’s neuroscience priorities, presenting opportunities for advancements across various therapeutic domains.

      As per the transaction terms, AbbVie is set to acquire all outstanding shares of CERE at a rate of $45.00 per share in cash. This transaction places the total equity value of Cerevel at approximately $8.7 billion. Both companies’ boards of directors have greenlit the transaction, which is slated to conclude in mid-2024, contingent upon Cerevel shareholder approval, regulatory clearances, and adherence to customary closing conditions.

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