PharmaDrug Inc (CSE:BUZZ) (OTCMKTS:LMLLF) announced Monday it has signed a definitive agreement finalizing the acquisition of biotechnology firm Sairiyo Therapeutics Inc in an all-stock deal valued at C$7.5 million.
Sairiyo’s lead drug candidate, Cepharanthine, is a repurposed and reformulated naturally derived compound being developed to treat rare forms of cancer.
Cepharanthine was recently granted orphan drug designation by the US Food and Drug Administration (FDA) to treat esophageal cancer, a market that is expected to reach US$1.5 billion by 2023.
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The drug has been used in Japan for more than 70 years to treat a variety of acute and chronic diseases. Clinical research indicates that Cepharanthine exhibits multiple pharmacological properties including anti-oxidative, anti-inflammatory, immuno-regulatory, anti-cancer, anti-viral and anti-parasitic properties.
Sairiyo has an exclusive license from a research and development organization to develop and commercialize reformulated Cepharanthine for all diseases and exclusive rights to the patent, method of manufacturing, clinical supply, pre-clinical data and know-how to support FDA clinical trials. The firm is currently preparing a pre-Investigational New Drug (IND)meeting request and briefing documents for submission to the FDA.
Toronto-based PharmaDrug is a specialty pharmaceutical company that is focused on the development and commercialization of controlled-substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs. The two companies will work together to support PharmaDrug’s initiatives in the psychedelics and cannabinoids space.
'Extremely excited'
"PharmaDrug is extremely excited to work with the Sairiyo team upon the closing of the acquisition on several fronts,” PharmaDrug CEO Daniel Cohen said in a statement. “Firstly, to prepare for the upcoming FDA pre-IND meeting request and secondly to explore other opportunities for Cepharanthine and its immense potential across various rare and life-threatening diseases. The company also plans to use Sairiyo's clinical research capabilities to potentially launch clinical studies in the pharmaceutical psychedelic space."
Under the terms of the agreement, PharmaDrug will acquire all of Sairiyo’s shares in exchange for 75 million units of PharmaDrug. Each unit is comprised of one share and one warrant exercisable at C$0.10 per share for an 18-month term. Sairiyo will become a wholly-owned subsidiary of PharmaDrug, joinng other subsidiaries SuperSmart (a Dutch psychedelic company) and Pharmadrug GmbH (a German medical cannabis distributor).
The deal is expected to close by the end of January.
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