Biota Pharmaceuticals to acquire Anaconda Pharma
Anaconda Pharma's lead candidate is AP611074, a patented, direct-acting antiviral in development to treat condyloma, or anogenital warts, as well as the orphan disease recurrent respiratory papillomatosis (RRP), both of which are caused by human papillomavirus (HPV) types 6 and 11. Anaconda Pharma has successfully completed a phase IIa clinical trial of AP611074 5% gel demonstrating biological activity with a significant reduction in the surface area of condyloma while exhibiting favorable local skin tolerability.
"We're very enthusiastic about the global market opportunity for AP611074, and believe it is uniquely positioned to significantly improve the treatment paradigm for anogenital warts, the most frequent viral sexually transmitted disease worldwide, and RRP, a condition in which tumors grow in the respiratory tract," said Dr. Joseph Patti, president and CEO of Biota. "We are encouraged by both the positive efficacy data as well as the favorable local skin tolerability profile observed in the proof-of-principle phase IIa clinical trial. We are looking forward to the initiation of a randomized, placebo-controlled, double-blind, phase IIb trial in patients with anogenital warts in the second half of 2015."
All of Anaconda Pharma's outstanding shares will be acquired for 3.5 million shares of Biota common stock and $8 million in cash, subject to certain closing and post-closing adjustments. Biota will fund the cash portion of the purchase price with cash on hand. The transaction also includes additional contingent financial consideration of up to $30 million, which is based on the successful achievement of certain future clinical and regulatory milestones, plus a royalty.
Closing of the transaction, which is expected to occur by the end of April, is subject to approval of the French Ministry of Finance and Economics and other customary conditions.