An east-end Ottawa research firm has acquired another pharmaceutical company working in the cannabinoid space, bolstering both its product pipeline and roster of researchers.
Tetra Bio-Pharma, which develops cannabinoid-based pain relief drugs out of Orléans, announced this week it will acquire Halifax-based Panag Pharma in a cash-and-stock deal worth $12 million. Tetra said in a statement Panag’s patented drug formulations for ocular disease and general neuropathic pain relief will help the local firm expand its commercial operations.
“In completing this acquisition of Panag Pharma we have not only acquired a large portfolio of cannabinoid derived pharmaceutical and natural health products but also a team of scientists that have a substantial amount of expertise in the field,” said Tetra CEO Guy Chamberland in a statement.
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Following the acquisition’s close, which Tetra expects to come later this month following regulatory approvals, Panag will become a wholly-owned but separate subsidiary of the Ottawa-based company. Panag’s shareholders could receive up to $15 million in cash payments from Tetra should the acquired firm reach certain operational milestones in the future.
Tetra Bio-Pharma has raised more than $20 million in funding this past year – including $7.1 million from licensed producer Aphria last November – to advance clinical trials for its drugs aiming to relieve pain for patients in cancer therapy.