Neurotrope Inc., a biopharmaceutical company with offices in Princeton, and Metuchen Pharmaceuticals LLC, a Freehold-based men’s health company, announced on Monday they will form Petros Pharmaceuticals, a company focused solely on men’s health conditions.
Under the merger, Petros’ pipeline of offerings will now include Metuchen’s Stendra, an erectile dysfunction drug, and another product for Peyronie’s disease. Daniel Alkon, who will remain as Neurotrope’s president and chief scientific offer and become a director said: “I am encouraged that Neurotrope Bioscience will continue its original focus, and potentially expand its plans to treat neurodegeneration.”
Once the merger has finalized, Neurotrope shareholders will own approximately 20% of the combined company and Metuchen shareholders will own 80%. Funding f0r new firm will include $20 million of Neurotrope’s available cash as well as from sales of Stendra.
“This merger will enable Petros to dramatically accelerate the commercial relaunch of Stendra and build a pipeline of other therapeutic products to improve men’s health including a topical treatment H100 for Peyronie’s disease. At Juggernaut, we look forward to supporting Petros to deliver on its mission of bringing value to patients within the men’s health space by investing in Stendra and the many opportunities that lie ahead,” John Shulman, founder and managing partner of Juggernaut Capital, a private equity firm serving as Metuchen’s principal investor, and executive chairman of Metuchen, said.
The deal is expected to close in the third quarter of 2020. Once it has, substantially all of Neurotrope’s assets, operations and liabilities will be retained by Petros and spun out into a separate company.
Charles S. Ryan, CEO of Neurotrope, will become the CEO, president and director of Petros. Four members from Neurotrope’s board of directors will become directors of Petros, including Shulman; Ivan Gergel; Bruce Bernstein, a director; and Josh Silverman, chairman. Four additional directors will be chosen by Metuchen before the merger is completed.
“Following an extensive review of strategic alternatives, Neurotrope’s board of directors believes that a merger with Metuchen and the formation of Petros offers shareholders the most compelling opportunity for a new direction to further enhance long-term value,” Ryan said. “Petros provides a platform to create the first publicly traded biopharmaceutical company focused exclusively on FDA-approved treatments for men’s health conditions, an underserved area of healthcare with significant growth potential.”
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo P.C. served as legal counsel to Neurotrope and Morgan, Lewis & Bockius served as legal counsel to Metuchen.