The combined company will have four products in its pipeline. AlgoRx’s portfolio of pain management drug candidates includes ALGRX 3268, which is in phase III clinical trials, ALGRX 4975, which is in phase II clinical trials, and ALGRX 1207, which is soon to enter the clinic. Corgentech continues to develop NF-kappaB Decoy, which is in two phase I/II trials for the treatment of eczema.
Under the terms of the agreement, Corgentech will issue, and AlgoRx stockholders will receive in a tax-free exchange, shares of Corgentech common stock such that AlgoRx stockholders will own approximately 62% of the combined company on a pro forma basis and Corgentech stockholders will own approximately 38%. The agreement and plan of merger has been approved by both boards of directors and will need to be approved by the companies’ stockholders.
“We believe that the combination of Corgentech and AlgoRx will add significant value for our stockholders by dramatically bolstering our product pipeline with late-stage product candidates that bring us closer to commercialization,” stated John McLaughlin, chief executive officer of Corgentech.