Vasogen, IntelliPharmaCeutics To Create Specialty Pharmaceutical Company

Vasogen and IntelliPharmaCeutics (IPC) have entered into a definitive agreement, subject to shareholder and regulatory approvals. As per the deal, Vasogen will combine with IPC under a plan of arrangement and merger to continue as a publicly-traded entity to be called – IntelliPharmaCeutics International.

Separately, Vasogen has signed an arrangement agreement with Cervus, an Alberta based limited partnership. This deal will reorganize Vasogen prior to completion of the transaction with IPC, which will provide gross proceeds to Vasogen of approximately $7.5m in non-dilutive capital.

Eldon Smith, chairman of Vasogen, said: The combination of IPC and Vasogen, along with proceeds from this non-dilutive financing, will provide our shareholders an exciting opportunity to have an equity interest in a strong, dynamic, company with experienced management, a broad development pipeline, and significant near-term revenue potential.

“Following a diligent exploratory and strategic review process, we believe that this combination clearly fulfils the Board’s mandate of identifying a strategic option that has the potential to provide long-term value to our shareholders. Important contributing factors to our decision included IPC’s leadership and long history of experience in drug development and the validation of their drug delivery technologies in attracting the interest and partnership of established pharmaceutical companies, he added.

Isa Odidi, chairman and CEO of IPC, said: This combination provides an ideal opportunity for IPC to make the transition to being a successful public specialty pharmaceutical company. With a diversified portfolio of product assets at varying development stages, shareholders of both organizations will have the opportunity to benefit greatly from multiple value-creating events for years to come.

The resources of the combined companies will allow us to focus on and accelerate the near-term commercialization of our lead product candidates, Dexmethylphenidate XR and Carvedilol CR, as well as a number of other important compounds in our product pipeline, including an early-stage innovation directed to long-acting, abuse-resistant narcotics, Mr. Odidi added.