Graft Polymer (UK) PLC (LSE:GPL) is buying Awakn Life Sciences Corp in an all-paper deal worth £4.98 million, expanding its interest in the fields of mental health and addiction.
Awakn, a Canadian clinical-stage biotechnology firm, specialises in treatments for substance use and mental health disorders.
Its lead programme, AWKN-001, is in a phase III trial for alcohol use disorder (AUD) in the UK.
The company also has a US-focused AUD treatment, AWKN-002, and a pre-clinical programme for trauma-related mental health conditions.
The deal is expected to deliver synergies between the two companies, leveraging Awakn’s advanced clinical pipeline and Graft Polymer’s UK biotechnology platform.
Graft chairman Dennis Purcell said: "This proposed acquisition marks an important milestone for Graft Polymer as we broaden our focus to address the pressing global challenges of addiction and mental health disorders.
"Awakn's advanced research and clinical programmes offer the potential to develop more effective and accessible treatments for these critical areas of need.
"We believe this strategic move will not only drive value for our shareholders but also contribute meaningfully to improving the lives of millions impacted by these conditions."