The board of directors also announced its intention to explore strategic alternatives with respect to its generics business. Completion of the proposed spin-off is subject to numerous conditions, including final approval by Bentley’s board and the filing and effectiveness of a registration statement with the Securities and Exchange Commission.
Bentley plans to spin off the drug delivery business as an independent, publicly traded company to be known as Cpex Pharmaceuticals. Bentley plans to implement the spin-off through a taxable stock dividend of all Cpex Pharmaceuticals common stock to Bentley shareholders. Cpex Pharmaceuticals plans to seek a listing on the NASDAQ capital market under the ticker symbol Cpex and Bentley will continue to trade on the NYSE under its current ticker symbol BNT. Upon completion of the plan, Bentley will focus on the generics pharmaceutical business.
James Murphy, chairman and CEO of Bentley, said: “The board believes that by separating Bentley into two focused and better understood companies, the opportunities for both the drug delivery business and the generics pharmaceutical business could be substantially enhanced and greater value could be created than under the current structure.
“Operating separately will allow each company to benefit from greater strategic and managerial focus. The separation will enable the two businesses to compete more effectively in their respective markets and optimize their respective business goals, research initiatives and capital requirements.”