Alliqua acquisition of Adynxx : Pennsylvania-based Alliqua BioMedical has agreed to merge with San Francisco-based biopharma company Adynxx to form a clinical-stage pharmaceutical firm focused on development of disease-modifying, non-opioid therapies for the treatment of pain.
As per the merger terms, Adynxx stockholders will become the majority holders of Alliqua’s outstanding common stock on a fully-diluted basis. Financial terms of the merger were not disclosed.
Commenting on Alliqua acquisition of Adynxx, Dave Johnson – CEO of Alliqua, said: “We are excited about creating multiple ways for our shareholders to maximize value with Alliqua. First, as announced in May, we intend to make a special cash dividend to our stockholders before the merger.
“Second, following an extensive review of strategic alternatives, Alliqua’s Board of Directors has determined that the signing of our definitive agreement with Adynxx will allow our stockholders the opportunity to enjoy value appreciation in their equity holdings.”
Alliqua, through its advanced hydrogel technology, develops and manufactures electron-beam cross-linked sheet gels for customers such as medical devices manufacturers, cosmeceuticals, and other commercial product applications.
The company operates a 16,000 square foot GMP manufacturing facility in Langhorne, Pennsylvania that is into development and custom manufacturing of a range of hydrogels.
On the other hand, Adynxx to address pain at its molecular roots is said to be developing a transformative technology platform.
The biopharma company’s lead candidate is Brivoligide, which is being developed for the reduction of postoperative pain and is intended to deliver long-term pain relief with a single administration at the time of surgery.
Brivoligide acts locally by inhibiting the protein EGR1 activity during surgery or trauma in pain-sensitive neurons and helps to shift the series of events leading to exacerbated pain after surgery.
Rick Orr – CEO of Adynxx, commenting on Alliqua acquisition of Adynxx, said: “With the ongoing opioid crisis in the United States, there is a critical need for novel and effective non-opioid therapeutics to treat pain and reduce opioid usage.
“Following this transaction, our goal is to accelerate the development of brivoligide to benefit patients that would otherwise experience greater pain and higher levels of opioid usage following surgery. We also plan to build a robust pipeline of novel therapeutics for pain and inflammation through development of our earlier-stage internal programs, our ongoing discovery collaboration leveraging artificial intelligence, and additional in-licensing activities.”
Alliqua acquisition of Adynxx will be subject to approval of both the companies’ shareholders. Following the closure of the deal, Alliqua will be renamed as Adynxx and will operate under the leadership of its current management team, with headquarters in San Francisco.