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PharmChem, Inc., the leading provider of sweat patch drug-testing technology, announced Monday that it will be acquired by Alcohol Monitoring Systems, Inc. in a transaction valued at $3.75 per share in cash, according to a press release.
The deal represents a 22% premium over PharmChem’s Jan. 31 closing price of $3.07, the day before it disclosed it was exploring strategic alternatives.
“This outcome validates the board’s belief that PharmChem is more valuable as part of a larger company,” said PharmChem board chairman Tim Eriksen said.
The deal has been unanimously approved by PharmChem’s board and is expected to close before the end of Q3 2025, pending shareholder approval and customary conditions. The company has already received support agreements covering 52% of outstanding shares.
“We are pleased that we were able to have PharmChem join with a company where the product's reach can be expanded, our customers better served, and our employees have more opportunity to grow,” said Thompson Clark, PharmChem interim president. “It is not every day that a deal is achieved that is a win for all stakeholders, but this is one of those days."
Alcohol Monitoring Systems holds the patent on the Secure Continuous Remote Alcohol Monitor System — better known by its shorthand, SCRAM. It went to market in 2003, becoming the most widely used transdermal alcohol monitoring device in the world, according to the company.
Said Chris Linthwaite, Alcohol Monitoring Systems’ CEO: “Our core mission is improving human lives and overall public safety through compliance-based products and services. This acquisition expands our organizational capabilities into drug testing and complements our industry leading portfolio of alcohol and location monitoring technologies.
Shareholders seeking more information are encouraged to contact CFO Shana Veale at [email protected]. Additional voting details will be released soon.