|Vyteris executes merger agreement with MediSync BioServices|
|By Staff and Wire Reports|
|Monday, 13 September 2010 06:19|
Apparently, Vyteris, Inc. (OTCBB: VYTR), developer of the first FDA-approved active transdermal patch, will be presenting some interesting news when its President and Chief Executive Officer Haro Hartounian, Ph.D. takes the podium at the Rodman & Renshaw Annual Global Investment Conference later this morning at the New York Palace Hotel in New York City.
Early this morning, the company announced that it has executed a definitive merger agreement with MediSync BioServices Inc., a privately held company focused on the consolidation of complementary, high-value, niche contract research organizations ("CRO"), site management organizations ("SMO"), and related businesses within the highly fragmented $22 billion contract drug development industry. This was a company struggling to survive, just a couple of months ago.
Late last week, the stock dropped -53.85% after it had seen shares nearly double in value follwing our report about their still developing "comeback" story. Of course it also helped that the Company announced positive results from a Phase II clinical trial evaluating the safety and efficacy of a pulsatile delivery system for the treatment of female infertility shortly after our initial story. Now comes this news.
"MediSync has a unique strategy for consolidation, growth and profitabliity in an established industry with exciting growth potential," said Hartounian."MediSync provides us with the opportunity to broaden our corporate strategy, bringing both a revenue platform that limits our longer-term capital requirements and execution expertise to more rapidly develop our pipeline products. The combined company represents a distinct opportunity in the life sciences industry that is guided by a team with a substantial record of value creation."
Under the terms of the definitive agreement, MediSync will become a wholly owned subsidiary of Vyteris.Consideration will consist of approximately 27 million shares of Vyteris common stock to current holders of MediSync stock and debt. Upon closing of the transaction, two additional MediSync directors will be appointed to Vyteris' Board of Directors.Two of Vyteris' current directors, Eugene Bauer and Joel Kanter, are directors of and own minority positions in MediSync, and are the source of introduction of the opportunity to Vyteris. Closing of the merger transaction is subject to consent by shareholders of Vyteris holding a majority of the issued and outstanding common stock of Vyteris owned by non-affiliates of MediSync.
Despite some attempts to reach them last week, we have no word on whether the company is still close to signing their widely rumored $20 million upfront deal -which was supposed to be loaded with not only milestones, but also hefty royalties- but in a recent filing they had disclosed the following:
"We will also evaluate a finite number of licensing and/or acquisition opportunities in an effort to bring in a technology or product which is closer to commercialization, such as a complementary technology appropriate for Phase III testing. Our business plan will continue to evolve over the next few fiscal quarters as we evaluate in-house projects as well as review appropriate outside opportunities"
Disclosure: No Positions