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news.Israeli biopharmaceutical Pharmos has entered into a definitive agreement to acquire Vela Pharmaceuticals, a privately owned company specializing in the development of medicines related to diseases of the nervous system.
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The transaction includes an initial payment of $5 million in cash and the issuance of 11.5 million shares of Pharmos common stock for a combined value of approximately $29.7 million. The transaction also includes the issuance of up to eight million additional Pharmos shares contingent on achieving specific clinical milestones.
The transaction will create a combined company focused primarily on diseases of the nervous system and autoimmune disorders. Pharmos’s assets include over $45 million in cash and a strong drug development pipeline. The most advanced drug in clinical development in the combined company’s pipeline will be Vela’s R-tofisopam, a promising and innovative new drug that has demonstrated positive phase II data for the treatment of diarrhea-predominant and alternating-type irritable bowel syndrome (IBS).
“Ultimately, we believe Vela’s lead product candidate, R-tofisopam, has significant therapeutic promise with the potential to materially expand the market for IBS therapies and represents large volume revenue potential,” said Alan Rubino, president and CEO of Pharmos.
The Pharmos clinical pipeline will also include cannabinor, a promising drug candidate for the treatment of pain, inflammation and autoimmune disease.