CombinatoRx Signs Merger Agreement With Neuromed

Published: 01-Jul-2009

Merger to brings togather product assets and financial resources of both organizations

CombinatoRx and Neuromed have entered into a merger agreement under which the companies will merge in all-stock transaction.

Under the terms of the agreement, CombinatoRx is expected to issue approximately 36 million new shares of its common stock to Neuromed stockholders with each party owning approximately 50% of the voting power of the merged organization upon closing.

The merger brings togather the product assets and financial resources of both organizations, including Exalgo milestones and royalty revenue and Neuromed’s drug development expertise, with the CombinatoRx portfolio of product candidates and its drug discovery capabilities.

Robert Forrester, Interim President and CEO of CombinatoRx, said: “By combining forces with Neuromed, we can create a sustainable biotechnology company that has significant product assets, unique discovery capabilities and substantial financial resources. In addition, Christopher Gallen and the rest of the Neuromed management team will bring their considerable product development expertise to bear on the CombinatoRx pipeline and discovery platform. Collectively, the Neuromed team have contributed significantly to more than 10 successful NDAs or other major regulatory submissions and they have launched over 10 pharmaceutical products.”

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