As part of the deal, Adynxx stockholders will become the majority owners of Alliqua’s outstanding common stock on a fully-diluted basis.
The public clinical-stage pharmaceutical firm will involve in the development of platform for first-in-class, disease-modifying and non-opioid therapies to treat pain.
Alliqua CEO Dave Johnson said: “First, as announced in May, we intend to make a special cash dividend to our stockholders before the merger.
“Second, following an extensive review of strategic alternatives, Alliqua’s Board of Directors has determined that the signing of our definitive agreement with Adynxx will allow our stockholders the opportunity to enjoy value appreciation in their equity holdings.”
Alliqua offers custom manufacturing solutions to partners in the medical device, cosmetics and OTC industry, through using its advanced hydrogel technology.
The firm has electron beam production process at its 16,500ft² GMP manufacturing facility in Langhorne of Pennsylvania, which will be used for custom manufacturing of a wide variety of hydrogels.
Adynx is engaged in the development of an advanced technology platform to address pain at its molecular roots.
Adynxx’s major product candidate brivoligide is being developed to reduce postoperative pain. It is intended to reduce acute post-surgical pain with a single administration at the time of surgery.
Brivoligide is said to act locally inhibiting EGR1 activity at the time of surgery or trauma in neurons critical to pain sensation, helping to shift the sequence of events leading to exacerbated pain after surgery.
The deal is subject to certain conditions, including approval by Alliqua’s and Adynxx’s stockholders.
Once the deal concludes, Alliqua will be renamed Adynxx and carries out operations under the leadership of Adynxx’s current management team. It will be headquartered in San Francisco of California.
Adynxx chairman and Domain Associates partner Dennis Podlesak said: “The benefits of the merger, combined with the strength of the management team, will also position the company to create additional value through potential pipeline expansion with a strategic focus on pain and inflammatory diseases.”