Lobe Sciences Ltd (CSE:LOBE, OTCQB:LOBED) revealed that it has inked a share purchase agreement to acquire Altemia & Company LLC and all its assets, intellectual property and inventory to manage patients suffering from Sickle Cell Disease (SCD), a rare inherited blood disorder marked by defective hemoglobin.
As part of the deal, Altemia shareholders will receive a consideration of $3.8 million through the issuance on a pro-rata basis of an aggregate of 76 million Lobe shares at a deemed issue price of $0.05 per share. Lobe will also pay a tiered royalty on certain annual net sales.
Vancouver-based Lobe, which is focused on advancing patient-friendly psychedelic drugs, said the move affirms its position as a rare disease drug development company and expands its portfolio to include four Orphan disease programs.
Investors reacted to the news, sending Lobe shares surging 43.4% to $0.037 on the OTC Markets in afternoon trade.
Launching first product
In a statement, Lobe CEO Philip J Young said: "Starting in the second half of 2023 we will launch our first commercial product, a medical food called Altemia for the management of SCD. This product has been well studied in human clinical trials.”
He noted that the patent-pending formulation is based on decades of research and will add commercial revenue starting this year.
“By targeting the 55 major SCD clinics in the US we will be able to efficiently provide support and education for clinicians…charged with treating this vulnerable population,” said Young.
“As we prepare for launch and commercialization, I will be able to call upon my previous successes launching and selling Orphan Drugs in specialty markets. Altemia will be positioned as a cost-effective medical food option for patients and payers seeking alternatives to drug products with significant side effects.”
New clinical stage asset
Young also revealed that in addition to Altemia, the firm has acquired a clinical stage asset, SAN100 which is being developed as a prescription drug alternative for the treatment of SCD uniquely in children.
“This indication may qualify for the Pediatric Priority Review Voucher," Young added.
According to Lobe Chief Scientific Officer Maghsoud Dariani, SCD affects around 100,000 patients in the US and millions more across the globe.
“We believe that Altemia and our follow-on prescription product, SAN100, will become an important component in the daily lives of patients with SCD around the world," said Dariani.
Dr Frederick D Sancilio, who is the founder and president of Altemia began his research into SCD almost 12 years ago.
“Clinical trials were initiated in 2021 and completed recently showing Altemia to significantly reduce C-reactive protein in patients after the first month of intervention,” said Dr Sancilio.
“Our group has invested a lot of time and several million dollars to bring us to the commercial launch phase of our first product. It's great to know that Mr Young will be managing the sales and distribution of this product."
Altemia is a patent pending oral emulsion consisting of a mixture of polyunsaturated fatty acid triglyceride esters clinically evaluated to reduce inflammation in adult sickle cell disease patients.
Lobe said it will pay a tiered royalty of up to 10% on annual net sales of $125,000,000 or more and issue 3 million warrants on the first achievement of $20 million in annual sales.
The deal also provides a 5% payment on the net sales revenue received for the sale of a pediatric Priority Review Voucher for the approval of the SCD prescription drug for the pediatric Orphan indication.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive
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