Vyant Bio (NASDAQ:VYNT) Inc said it has closed a definitive agreement with Reaction Biology Corporation in the sale of its subsidiary vivoPharm LLC, allowing Reaction to expand its suite of drug discovery services.
According to Vyant Bio (NASDAQ:VYNT), Reaction will retain US personnel at vivoPharm, located in Hershey, Pennsylvania, which includes in vitro and in vivo capabilities.
The purchase price was US$5.5 million in an upfront cash payment, subject to customary adjustments for working capital, closing cash, indebtedness and transaction expenses, according to Vyant Bio.
READ: Vyant Bio posts Q2 results, set to advance VYNT-0126 to treat Rett Syndrome into clinical trials early next year
Cherry Hill, New Jersey-based Vyant Bio said it expects to net approximately $4.4 million in cash after tax and transaction related expenses, as well as incur $0.6 million in exit costs associated with the transaction.
Vyant Bio CEO Jay Roberts said the transaction provides non-dilutive capital and enables Vyant Bio to further concentrate its efforts to more rapidly advance its therapeutic pipeline in genetic central nervous system disorders.
"Reaction is an ideal partner to leverage vivoPharm's pre-clinical oncology and immuno-oncology drug discovery services, including one of the broadest collections of syngeneic tumour models, well-characterized tumour cell lines and highly qualified technicians using our state-of-the art laboratories," Roberts said in a statement.
Reaction Biology CEO John H Johnson said vivoPharm’s US operations are highly complementary to Reaction's existing suite of drug discovery contract research organization (CRO) services, enabling it to build upon its legacy of excellent science and customer-centric innovation.
"This investment in talent, infrastructure and resources is an important step in our roadmap for fully realizing Reaction's potential as a provider of solutions for discovery and development of new drug candidates," Johnson said in a statement.
Through the acquisition, Reaction gains laboratory facilities, equipment, employees, cell lines and capabilities in pharmacology, toxicology, pathology and bio analytics.
Founded in 2001, Reaction specializes in supporting research goals with capabilities that include functional biochemical assays, compound screening, a wide range of mechanistic and biophysical studies, pharmacology and disease models, exploratory toxicology, biomarkers, and an extensive array of cell-based assays.
Vyant Bio has a platform of therapeutics seeking to treat neurodevelopmental and neurodegenerative diseases, with current programs targeting Rett syndrome, CDKL5 deficiency disorders, and Parkinson's disease.
Contact the author at susie@proactiveinvestors.com