Critical Therapeutics merging with Cornerstone

Critical Therapeutics Inc.'s stock fell 23 percent today after the Lexington biotech said it will merge with privately held Cornerstone BioPharma Holdings Inc. of North Carolina.

The combined company will be called Cornerstone Therapeutics Inc., be based at Cornerstone’s offices in Cary, N.C. and run by Cornerstone's chief executive, Craig Collard. Cornerstone shareholders will also control 70 percent of the combined firm.

Critical Therapeutics, which owns rights to two asthma drugs, Zyflo and Zyflo CR, had $12.9 million in revenue last year, but lost $37 million, forcing it to consider a sale or merger.

With today's stock decline, Critical had a stock market value of roughly $21 million, suggesting the combined firm will be worth about $70 million.
(By Todd Wallack, Globe staff)