PharmaDrug Inc. (CSE:BUZZ) (OTCMKTS:LMLLF) said it completed the previously announced acquisition of Sairiyo Therapeutics Inc. on February 2, 2021.
In a statement, Daniel Cohen, PharmaDrug's chairman and CEO commented: "We are extremely excited to close the acquisition of Sairiyo and enter into a new phase for PharmaDrug. The acquisition helps complete PharmaDrug's business model by adding a vertical in research and development."
READ: PharmaDrug finalizes deal to acquire biotechnology firm Sairiyo in all-stock deal worth C$7.5 million
Sairiyo is a biotechnology company focused on repurposing and developing improved formulations of naturally derived compounds for serious, rare, and life-threatening diseases with the aim to obtain European Medicines Evaluation Agency and US Food and Drug Administration (FDA) approval.
The Japanese company is advancing the clinical development of its lead drug candidate, Cepharanthine, a repurposed and reformulated naturally-derived compound for the potential treatment of cancer, neurological, inflammatory and infectious diseases.
Cepharanthine is a natural product and an approved drug used for more than 70 years in Japan to treat a variety of acute and chronic diseases. In clinical research, 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 group is currently focused on advancing the clinical development of Cepharanthine to treat rare cancer diseases. Sairiyo recently received FDA orphan drug designation for Cepharanthine in the treatment of esophageal cancer.
PharmaDrug said its management will immediately move to integrate Sairiyo into the company with a goal to refine its Cepharanthine strategy including, but not exclusively, advancing the drug into FDA clinical trials for esophageal cancer. The management will also actively seek other avenues for the drug's diverse opportunities.
PharmaDrug and Sairiyo have also already begun to develop a strategy to commence unique and value-adding research in the psychedelic space.
Under the terms of the agreement, PharmaDrug acquired all of the issued and outstanding shares of Sairiyo in consideration for the issuance of an aggregate of 75,000,000 units of PharmaDrug. Each unit is comprised of one common share of Pharmadrug and one common share purchase warrant which entitles the holder to acquire one common share at any time on or before August 2, 2022, at an exercise price of $0.10 per share.
PharmaDrug is a specialty pharmaceutical company focused on the research, development and commercialization of controlled-substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs.
The company owns 80% of Pharmadrug Production GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license and German EuGMP certification allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU.
It also owns 100% of Super Smart, a Dutch company building a modern adult-use psychedelic retail business with an elevated and educational focus. PharmaDrug recently acquired Sairiyo Therapeutics, a biotech company that specializes in researching and reformulating established natural medicines with a goal of bringing them through regulatory and research-driven clinical trials.
Contact the author at jon.hopkins@proactiveinvestors.com