In consideration for Vernalis acquiring the entire issued share capital of Ionix, Vernalis will issue to Ionix’s shareholders approximately 9% of the enlarged issued share capital of Vernalis. Of these shares, 90% will be issued on completion of the transaction with the remaining shares being issued in July 2006, subject to reduction for any warranty or indemnity claims.
A cash payment of GBP5 million will be paid to existing Ionix shareholders on the receipt of the first marketing authorization for IX-1003, subject to reduction for any warranty or indemnity claims.
IX-1003 is Ionix’s principal asset; a proprietary intranasal formulation of buprenorphine for acute post-operative pain. Buprenorphine is a well known opiate analgesic and the intranasal formulation is being developed to provide rapid pain relief whilst potentially reducing some side effects associated with opiates.
Simon Sturge, CEO of Vernalis, said: “Ionix is a good strategic fit and adds a clinical program that has the potential to provide a convenient alternative to other opiate analgesics currently on the market.”