Lobe Sciences Ltd (CSE:LOBE, OTCQB:LOBED) has provided further details regarding its acquisition of Altemia & Company LLC, first announced on April 18, 2023, following a review by the British Columbia Securities Commission.
Altemia is known for its patent-pending oral emulsion, which has shown promise in reducing inflammation associated with sickle cell disease (SCD) in adults. SCD is a hereditary red blood cell disorder that affects approximately 100,000 individuals in the United States, with a similar number of patients in Europe, the Middle East, Africa, and India.
Lobe Sciences plans to globally distribute Altemia either directly or through partnerships.
In a statement, Philip J. Young, the chairman and CEO of Lobe Sciences, 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 (sickle cell disease). This product has been well-studied in human clinical trials. It is a proprietary, patent-pending formulation based on decades of research and will add commercial revenue this year and beyond. By targeting the 55 major SCD clinics in the United States we will be able to efficiently provide support and education for clinicians and other health care providers charged with addressing this vulnerable population."
He added: ”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. We will be announcing further information related to our commercial plans shortly. In addition to Altemia we have acquired a clinical-stage asset, SAN100, developed as a drug alternative for the treatment of SCD uniquely in children. This indication may qualify for the Pediatric Priority Review Voucher."
Young noted that the acquisition of Altemia positions Lobe Sciences as a revenue-generating biotech company focused on treating orphan diseases. The revenue generated from Altemia sales will support ongoing clinical activities and the development of Lobe's other projects, such as L-130 and L-131.
The share exchange agreement between Lobe Sciences and Altemia shareholders involves the issuance of 76,000,000 common shares of Lobe at a price of $0.05 per share. Certain restrictions on the transfer of shares will apply, and Lobe will also issue warrants contingent on Altemia achieving $20,000,000 in annual sales.
Furthermore, Lobe Sciences will pay royalties on annual sales to Altemia under the licensing agreement with Sancilio, LLC. The company will also compensate Sancilio LLC for the sale of a Pediatric Priority Review Voucher related to SCD prescription drug approval. Dr Sancilio, owner of Sancilio LLC, is expected to join Lobe's board of directors in the near future.
Incentive Award Grants
Lobe Sciences also announced that on June 30, 2023, it granted stock options to acquire a total of 5,800,000 common shares of the company directors, officers and consultants of the company. The options are exercisable at a price of $0.05 per share and expire three years from the date of grant. The options are subject to various vesting provisions where 50% of the options granted vest immediately on the grant date and 50% of the options vest on June 30, 2023.
The company also issued 1,000,000 deferred share units (DSU) to a director of the company and 4,800,000 restricted share units (RSU) to officers of the company. 50% of the DSUs and RSUs vest on each of June 30, 2024, and June 30, 2025.
Lobe Sciences aims to develop practical psychedelic medicines and innovative delivery mechanisms to enhance mental health and wellness through collaborations with industry-leading partners.
Contact the author at jon.hopkins@proactiveinvestors.com