San Diego-based DelMar Pharmaceuticals Inc. said Wednesday it will acquire Adgero Biopharmaceuticals Holdings Inc. in an all-equity transaction.
This combination brings together DelMar’s DNA-targeting chemotherapeutic and proven anti-cancer activities with Adgero’s photodynamic therapy platform.
Princeton-based Adgero is a privately held biopharmaceutical company focused on the development of its late stage photodynamic therapy platform for the treatment of serious cutaneous oncology indications.
Upon completion of the merger, current DelMar and Adgero stockholders will own 50.5 percent and 49.5 percent of the total voting power of the combined company, respectively, exclusive of securities to be issued in a financing to occur prior to the merger closing, as well as compensation payable in connection with the merger and the financing.
This acquisition is the result of an extensive search for a suitable oncology therapy and provides the combined company with a diversified, late-stage oncology pipeline.
— Saiid Zarrabian, president and CEO, DeMar Pharmaceuticals
The transaction is expected to close in the third quarter of 2020, at which time DelMar is expected to change its name to Kintara Therapeutics Inc. and trade on Nasdaq under the new ticker symbol “KTRA.”
“The acquisition of Adgero by DelMar positions the combined company for long-term corporate growth and increased shareholder value by bringing together DelMar’s oncology therapeutic candidate, VAL-083, and Adgero’s REM-001 photodynamic therapy with a lead indication in CMBC,” said DeMar President and Chief Executive Officer Saiid Zarrabian. “This acquisition is the result of an extensive search for a suitable oncology therapy and provides the combined company with a diversified, late-stage oncology pipeline. During the next 12-18 months, we expect to achieve significant clinical milestones, driven by a seasoned leadership team that will bolster our oncology drug development expertise.”
Upon completion of the merge Zarrabian will continue to serve in his leadership role; John Liatos, Adgero’s interim CEO and chief financial officer, will serve as senior vice president, Business Development; Scott Praill, DelMar’s CFO, and Dennis Brown, DelMar’s chief scientific officer, will each continue to serve in their respective capacities; and Steve Rychnovsky, Adgero’s vice president, Operations and Product Development will serve as vice president, Research and Development.