The equity investment builds on an ongoing sponsored research arrangement in which, on behalf of Kos, Triad is designing and synthesizing certain new chemical entities that regulate HDL (or ‘good’) cholesterol.
This alliance will broaden Kos’ R&D efforts to include the discovery and synthesis of new chemical entities, leveraging the company’s drug delivery and development operations.
With the equity investment, Kos obtains an approximate 27% fully diluted ownership interest in Triad and board of directors representation. The equity investment consists of two $4 million parts, with the second $4 million investment in Triad to be made within 18 months, if Triad achieves specified milestones relating to its R&D activities.
Additionally, the principal stockholder of Triad is investing an additional $8 million on similar terms and conditions as the Kos investment, as part of a $16 million round of financing for Triad.
“The strategic investment in Triad complements our existing development capabilities and enhances the research part of R&D,” said Adrian Adams, president and CEO of Kos. “Moreover, our foray into new chemical entity development is part of a planned evolution of Kos and fortifies our fully integrated status.”
In connection with the existing sponsored research program with Triad, Kos possesses rights to certain HDL molecules designed and developed by Triad. Currently, Kos markets Niaspan and Advicor, two internally developed therapies that are highly potent in raising HDL cholesterol, in the US. Additionally, Merck KGaA, through its international alliance with Kos, markets Niaspan in various countries of the EU.