Tetra Bio-Pharma (TSX-V: TBP), a Canadian company focused on developing cannabinoid-based pain treatments, is strengthening its pipeline. In that vein, the company announced its intention to acquire Panag Pharma Inc. this morning.
Panag, based in Nova Scotia, Canada, focuses on ocular disease treatment, as well as treatments for other pain-related conditions such as general neuropathy. The company’s expertise in wellness products will bring inroads to expanding Tetra’s commercial operations.
Building its product pipeline
“We are very pleased to announce this news to our shareholders. We have been working with Panag for over a year. And as a combined entity, we will have a robust product pipeline of cannabinoid derived drugs for development as prescription or OTC drugs.” Dr. Guy Chamberland, CEO, and CSO of Tetra.
He continued, “Tetra is not just acquiring assets and intellectual property. We are joining a group of world-renowned cannabinoid experts that will help take Tetra to the next level as a pharmaceutical company.”
Tetra intends to continue to licence its developments out to generate revenues. Meanwhile, acquiring Panag’s operations will contribute to discovery and early phase drug developments.
“Panag will bring Tetra Natural Health a unique pipeline of products, thereby strengthening our role as a key player in the cannabinoid wellness market.” Richard Giguere, CEO of Tetra Natural Health.
Q4 2019 acquisition completion target
“We look forward to working with Panag to commercialize these products globally,” said Giguere. Furthermore, he said Tetra expects revenues from these products by Q4 2019 following the acquisition’s completion.
Dr. Orlando Hung, a co-founder of Panag, also said “we are very excited to have the opportunity to continue our cannabinoid research work and partner with Tetra Bio-Pharma. The timing is perfect. There is an urgent need for non-opioid medications to treat pain and inflammation.”
He continued “we expect the Panag-Tetra Bio-Pharma combined portfolio of cannabinoid products to play a significant role in the management of pain and inflammation.”
The Proposal, which is non-binding, would allow Tetra to acquire 100% issued and outstanding Panag shares for $12,000,000. Tetra may also pay up to $15,000,000 in milestone payments after Panag meets operational targets.
Tetra aims to close the Transaction before the end of the calendar year. Moreover, 100 percent of Panag shareholders signed the term sheet. Indeed, the transaction looks to close pending due diligence.
About Tetra Bio-Pharma
Tetra Bio-Pharma is a biopharmaceutical cannabinoid-based drug producer with Health Canada-approved and FDA-reviewed clinical programs. The company aims to bring original prescription drugs and treatments to patients and healthcare providers. Furthermore, it has several subsidiaries contributing to its goal of building a Biopharmaceutical, Natural Health, and Veterinary Product pipeline.
Panag Pharma Inc. is a Canadian biotech company. Its focus is on developing innovative cannabinoid-based pain and inflammation treatments. The company’s Ph.D. scientists and medical doctors are global leaders in pain treatment and management research. Their formulations focus on the skin, eye and other mucous membranes.
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