US-based Biozone Pharmaceuticals has announced that it has agreed to terms and signed a letter of intent (LOI) to merge with Cocrystal Discovery, a privately-held biotechnology company developing antiviral therapeutics for human diseases.
Cocrystal Discovery has breakthrough technologies that enable the creation of first- and best-in-class antivirals.
Cocrystal Discovery has previously received strategic investments from Teva Pharmaceuticals (TEVA), Opko Health (OPK), and The Frost Group. Opko Health and The Frost Group together own approximately 40% of Cocrystal Discovery.
Cocrystal Discovery has five therapeutic programs targeting the Hepatitis C Virus (HCV), Influenza, the Human Rhinovirus (HRV), Dengue, and the Norovirus.
Cocrystal Discovery existing CEO and chairman Dr Gary Wilcox will become the CEO and chairman of the combined company. Dr Wilcox served on the board of directors and was executive vice president of operations at Icos from 1993 through its sale to Eli Lilly for $2.3bn in 2007.
At Icos he led the teams developing Cialis, which now has annual sales over $2bn, and had notable large investors including Bill Gates backing the company.
"We believe this merger will significantly enhance our ability to bring our small molecule inhibitors of the viral replication complex to market," commented Dr. Wilcox.
"Drs. Frost and Hsiao have a proven track record of driving healthcare innovation while creating significant value for shareholders. We believe in our ability to discover oral, once-a-day, broad-spectrum antiviral drug candidates targeting the polymerase enzyme of the Hepatitis C virus. Our other first-in-class therapeutic programs have the potential to be billion dollar opportunities as well."
Cocrystal Discovery chief scientist and a director Dr Roger Kornberg will keep the title of chief scientist of the combined company.
Dr Phillip Frost and Dr Jane Hsiao are current Directors at Cocrystal. Dr Frost is the chairman and CEO of Opko Health and the chairman of the board of Teva. Dr Hsiao is vice chairman and chief technical officer of Opko Health.
Under the terms of the merger agreement, current shareholders of Biozone Pharmaceuticals and Cocrystal Discovery will own approximately 40% and 60% of the combined company, respectively.
The Merger is expected to close at the end of 2013, and is subject to customary conditions to closing as detailed in the Merger Agreement. The structure of the transaction will be in the form of a reverse merger with Cocrystal Pharma as the surviving corporation and will now be headquartered in Bothell, WA.
The combined company will initially continue to trade on the OTCBB under the symbol BZNE.