DOR BioPharma to acquire Gastrotech Pharma

In connection with the closing of this acquisition, DOR will issue the stockholders of Gastrotech $9 million in shares of DOR common stock. A further $30 million in cash or stock is payable upon the achievement of certain developmental, regulatory and commercial milestones.

The companies intend that the acquisition will include the transfer to DOR of Gastrotech’s ongoing clinical programs as well as all intellectual property and facilities.

This acquisition will be concluded pursuant to the execution of definitive documents and must be approved by a majority of DOR BioPharma’s shareholders.

“We view this acquisition as synergistic with our orBec program,” stated Michael Sember, president and CEO of DOR. “This acquisition will deepen our product pipeline and fortify DOR’s focus on cancer/GI disease research through the acquisition of two clinical-stage programs that are complementary to orBec.”

Following the close of this acquisition, DOR’s pipeline will be bolstered by the addition of two phase II programs, GTP-010 and GTP-200.

GTP-010 is being studied in collaboration with Eli Lilly and is currently in a phase II trial for the treatment of pain associated with irritable bowel syndrome (IBS). The drug has been shown to reduce the gastrointestinal contractions associated with IBS and other GI disorders.

Meanwhile, preclinical and clinical studies have demonstrated GTP-200’s positive effect on regulation of appetite, food intake, and metabolism. A potential indication for the drug is in cancer cachexia, estimated to be a $4 billion market and an unmet medical need affecting 50% of all cancer patients and fatal in 40% of patients.