Vernalis to buy Ionix Pharma for L12.5M

Vernalis has said it is to acquire the fellow UK-headquartered, privately-held Ionix Pharmaceuticals in a share-based transaction valuing the latter at about L12.5 million ($22.0 million). Completion of the deal, which is not subject to Vernalis' shareholder approval, is expected before the end of July.

Ionix' principal asset is IX-1003, a proprietary intranasal formulation of buprenorphine for acute post-operative pain. Buprenorphine is a well-known opiate analgesic and the intranasal formulation is being developed to provide rapid pain relief whilst potentially reducing some side effects associated with such agents. The IX-1003 program, which has completed Phase I testing and is expected to commence Phase II in the second half of 2005, is partnered with Reckitt Benckiser Healthcare, which will pay the development costs for this clinical study.

Ionix retains an option to co-promote IX-1003 in the USA and will receive milestones and royalties through the development and commercialization of the product. Should Vernalis exercise the Ionix option to co-promote the product at the end of the Phase II trial, it will contribute to a proportion of future developmental and marketing costs in return for a share of profits.