Outlook Therapeutics (NASDAQ:OTLK) Inc revealed that BioLexis Private Limited, a strategic shareholder in the pre-commercial biopharmaceutical company, is being reorganized and has resulted in GMS Holdings emerging as its largest shareholder.
The Singapore and Iselin, New Jersey-based biopharma company noted that the BioLexis reorganization, which does not entail any changes in the indirect ownership of Outlook Therapeutics, provides GMS Holdings with “increased flexibility” to support Outlook’s growth as its largest shareholder.
Following an agreement among BioLexis, GMS Ventures & Investments (GMS V&I), and certain GMS affiliates on April 21, 2022, GMS V&I has taken direct ownership of all the shares of Outlook Therapeutics that were indirectly owned by GMS Holdings through BioLexis.
As the next step in the reorganization, GMS Holdings will cease to be a shareholder in BioLexis and BioLexis will be renamed Tenshi Healthcare Private Limited. The company said GMS Holdings does not have an economic interest in or voting rights regarding the shares of Outlook that are held by BioLexis.
The firm said BioLexis directly holds the shares beneficially owned by the minority shareholder in BioLexis, Tenshi Life Sciences Private Limited and Tenshi Life Sciences Private Limited.
Since the initial investment by BioLexis in 2017, Outlook said it has undergone a “significant transformation” and has successfully completed three clinical trials which recently culminated in a biologics license application (BLA) submission to the United States Food and Drug Administration (FDA) on March 30, 2022.
According to Outlook, as the largest investor, GMS Holdings has “actively supported” it by leading and participating in “multiple capital raises” to support the company’s growth strategy.
“The submission of a BLA for ONS-5010/LYTENAVA (bevacizumab-vikg) with the FDA is a significant milestone to achieve and places Outlook Therapeutics on a path to potential marketing approval for a very promising therapy,” Faisal Sukhtian, the executive director of GMS Holdings and a member of BioLexis’ board, said in a statement.
“With this milestone accomplished, the shareholders of BioLexis have fully realized their intended objectives for the joint venture. This reorganization will see the existing partners translate their joint ownership positions in Outlook Therapeutics into direct stakes,” he added.
In the meantime, Outlook Therapeutics CEO Russell Trenary said the company appreciates the “longstanding support” it has received from BioLexis.
In connection with the reorganization, Outlook and GMS Holdings forged an Amended and Restated Investor Rights agreement, which replaces the previous Investor Rights Agreement among Outlook, BioLexis and GMS V&I. BioLexis no longer has any rights under the Amended and Restated Investor Rights Agreement, said the company.
Outlook Therapeutics is working to develop and launch ONS-5010, the clinical stage company’s treatment for age-related wet macular degeneration and other retinal diseases.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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