Rare Disease Therapeutics Company created by a recent Merger of Capnia Inc. and Essentialis Inc.
Capnia Inc., a leading provider and developer of innovative healthcare products to be used for the screening, detection, and treatment of medical conditions has joined forces with Essentialis Inc., a clinical-stage pharmaceutical company focused on the development of breakthrough medicines. The companies entered into a definitive merger agreement on December 27, 2016 to create a rare disease therapeutics company. The combined Company will focus on advancing novel, late-stage asset for the treatment of Prader-Willi Syndrome (PWS), a genetic disorder that causes obesity, intellectual disability, and shortness in height. Some key strategic benefits from the merger include:
- Accelerating development of late-stage clinical asset
- Well capitalized
- Proprietary, high-value, orphan product
- Substantial value creation
With the transaction already approved by the board of directors in both companies, the agreement states that Capnia will acquire the outstanding shares of Essentialis. Upon closing, Capnia plans to issue new shares of common stock at $0.96 per share, creating gross proceeds of $8.0 million. The proceeds will then be used to execute a Phase II/III clinical study for PWS patients. The deal is expected to close during the first quarter of 2017.
Read the full press release at http://www.capnia.com
Below are highlights of additional Merger and Acquisition activity from the last week:
Application Software M&A News: Descartes Systems Group (TSX: DSG), a global leader in uniting logistics-intensive business in commerce, announced that it has acquired Datamyne, a leading provider in cloud-based trade data content.
Read more at https://www.descartes.com
Healthcare Distributors M&A News: ACETO Corporation (NASDAQ: ACET) recently announced it has completed the acquisition of Citron Pharma LLC for a total consideration, prior to any potential earn-out payments, of approximately $429 million.
Read more at http://www.aceto.com
Communications Equipment M&A News: Netgear, Inc. (NASDAQ: NTGR), a global networking company announced that is has acquired Placemeter, Inc., an industry leader in computer vision analytics.
Read more at http://www.netgear.com
