Tokai Pharmaceuticals Inc (NASDAQ:TKAI) and Otic Pharma Ltd., reported that the two firms, together with the Otic Pharma shareholders, have finalized a definitive share purchase deal under which the Otic Pharma shareholders will turn to be the majority owners of company.
The deal will result in a NASDAQ-listed firm focused on the commercialization and development of products for ENT problems, comprising Otic Pharma’s prime contender which is a nasally-given, combination drug product planned to address the underlying reason of OM/ETD, a condition that impacts over 700 million people across the world annually.
Tokai will function under the name “OticPharma, Inc.,” and will be headed by Gregory J. Flesher, existing CEO of Otic Pharma Ltd. Jodie Morrison, who is the current CEO and President of Tokai, will serve as a member of the board. Morrison said that over the last months, the company has performed an extensive assessment of strategic options intended at increasing value for their investors over the long-term.
They believe the proposed deal with Otic Pharma, a firm that has both an experienced leadership team and a promising pipeline with a record of creating considerable investor value in public pharmaceutical firms, advances this goal.
Flesher said that their lead plan in otitis media, ‘OP-02’, has considerable potential. It is an investigational drug offering developed to break the cycle of chronic and recurring otitis media which affect many people across the world.
The management project to have Phase I clinical pharmacodynamic report in 1H2017 and, with this deal, to have the capital required to be able to enter directly into Phase II development to discover the product’s ability to avert otitis media in children. Under the agreement terms, the investors of Otic Pharma will obtain an aggregate of 32,172,209 shares of newly released Tokai common stock, whereas outstanding Otic Pharma convertible securities and options will be taken by Tokai.