Novopharm And Genesys Form Alliance

20 April 1997

Canadian companies Novopharm Biotech and Genesys Pharma Inc have signeda letter of intent for an agreement under which NB will acquire two generic biopharmaceutical products developed by GPI. The latter is currently researching and developing an antisense drug, GPI-2A, for the treatment of AIDS. Proceeds from the sale of the two products will be used to fund a Phase I clinical trial involving GPI-2A.

Also as part of the deal, GPI has agreed, at the option of NB, to propose and recommend to its shareholders that they approve a business combination between NB and GPI, which will result in NB acquiring at least 90% of the outstanding shares of GPI. In return for the two products and the option to acquire a majority stake in GPI, NB will pay the firm C$500,000 ($367,250).

Within three months of acquiring the two products, NB will also subscribe for 363,636 common shares of GPI at a price of C$1.10 per share. If the combination option is not exercised within 120 days of the start of Phase I clinical trials of GPI-2A, then for every 30-day period thereafter, NB will subscribe for an additional 90,909 common shares of GPI at a price of C$1.10 per share until either the completion of the trial, or December 31, 1997.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK





Today's issue

Company Spotlight