DelMar Pharmaceuticals Inc. a Seattle-based biopharmaceutical firm focused on the development of new solid tumor cancer therapies, announced on Wednesday it has acquired Adgero Biopharmaceuticals Holdings Inc., a Princeton-based biopharmaceutical firm focused on treating the signs of cutaneous oncology.
Under terms of the merger, Adgero stockholders will receive shares of DelMar common stock for shares of Adgero they own. Once the deal is finalized, current DelMar and Adgero stockholders will own 50.5% and 49.5% of the total voting power, respectively.
The deal is expected to close in the third quarter of 2020. DelMar is expected to change its name to Kintara Therapeutics Inc. and trade on the NASDAQ under the ticker symbol “KTRA”.
The combination will bring together DelMar’s DNA-targeting chemotherapeutics with Adgero’s photodynamic therapy platform.
“The acquisition of Adgero by DelMar positions the combined company for long-term corporate growth and increased shareholder value by bringing together DelMar’s oncology therapeutic candidate, VAL-083, and Adgero’s REM-001 photodynamic therapy with a lead indication in CMBC,” Saiid Zarrabian, CEO and president of DelMar. “This acquisition is the result of an extensive search for a suitable oncology therapy and provides the combined company with a diversified, late-stage oncology pipeline. During the next 12-18 months, we expect to achieve significant clinical milestones, driven by a seasoned leadership team that will bolster our oncology drug development expertise.”
Once the transaction closes, Zarrabian will continue to serve as CEO and president; John Liatos, the current interim CEO and chief financial officer at Adgero, will served as senior vice president, business development; Scott Praill, the CFO of DelMar and Dennis Brown, chief scientific officer, will continue in their respective roles; and Steve Rychnovsky, vice president, operations and product development for Adgero will be named vice president, research and development.
“This combination provides us with the opportunity to not only deepen our pipeline but also strengthen our oncology drug development expertise and capabilities. … On our end, we are tremendously proud of the progress we have accomplished to date, and through this combination we look forward to creating a highly focused oncology company that can develop new therapies to help physicians and patients combat cancers where current treatment options are limited,” John Liatos, interim CEO and chief financial officer, Adgero, said.
Lowenstein Sandler LLP acted as external legal counsel to DelMar and Ladenburg Thalmann & Co. Inc. provided a fairness opinion. Gracin & Marlow LLP acted as external legal counsel to Adgero.