Vistagen has signed a definitive agreement for the acquisition of clinical-stage drug development firm Pherin Pharmaceuticals.
Under the deal, Vistagen will offer nearly 12.4 million shares of the company’s common stock as well as a nominal cash payment.
Pherin works on discovering and developing investigational pherine compounds to treat neuropsychiatric and neuroendocrine conditions.
Its complete pherine pipeline will be taken over by Vistagen on closing.
Subsequently, Vistagen will gain complete ownership of intellectual property rights to Pherin’s two drug candidates, PH94B and PH10, which are in advanced development stage.
At present, PH94B is being analysed in a Phase III trial for social anxiety disorder (SAD) as well as Phase II trial for adjustment disorder with anxiety (AjDA).
PH10 is being developed clinically for major depressive disorder (MDD).
Apart from these two drugs, Vistagen will add three early clinical-stage pherine product candidates to extend its pipeline with to its pipeline.
These candidates comprise, PH80 for migraine and hot flashes, PH15 for cognition improvement and PH284 for appetite-linked ailments.
With the Pherin acquisition, Vistagen is no longer entitled to make royalty and milestone payments linked to these products in the future.
Vistagen CEO Shawn Singh said: “Our confidence in the potential role of pherine compounds in fundamentally shifting the treatment paradigm for individuals living with anxiety, depression and several other disorders with unmet need has never been stronger.
“This transaction not only allows Vistagen to secure unencumbered global rights to a multi-asset pherine product pipeline and all future value from ownership of the pipeline, but it also establishes Vistagen as the market leader in the development and commercialisation of this innovative class of small molecule drug candidates across a wide range of therapeutic areas.”