Anesiva Signs Merger Agreement With Arcion

Anesiva and Arcion have signed a definitive merger agreement. The merger is likely to result in a public company with a portfolio of late-stage targeted pain therapeutics.

The merger transaction will combine the companies under the name of Arcion Therapeutics, and is expected to close in the third quarter of 2009. Upon closing of the merger, Arcion and Anesiva shareholders will own approximately 64% and 36%, respectively, of the outstanding shares of the combined company.

The proposed merger would create a synergistic company with a pipeline comprised of late-stage programs to address neuropathic pain, moderate-to-severe osteoarthritis and post-operative pain.

Michael Kranda, CEO of Anesiva, said: This merger and the synergies that it offers present an exciting new opportunity for Anesiva investors. The combined company will have the financial resources, pipeline of products and the management team to maximize shareholder value going forward. Because of the focus of our product portfolio and the strength of the combined team of executives and advisors, we believe that we can operate under a virtual, cost-efficient business model that will create many value-driving milestones.

James Campbell, CEO of Arcion, said: There is a tremendous need to create drugs that treat pain where the pain signal originates and we believe that our targeted treatments will address the shortcomings of current therapies, including addiction, systemic side-effects, insufficient efficacy, and frequent or inconvenient dosing. Merging with Anesiva creates a portfolio of late-stage product candidates with extensive safety and efficacy databases that could fulfill many unmet needs in the US prescription pain market.