Biotech company signs $5.42M merger deal
A New Haven-based biotech firm that is developing drugs to treat disorders of the brain and central nervous system has signed an agreement to merge with a British company.
The agreement between New Havenbased Bioasis Technologies and Midatech Pharma was announced Tuesday. Under the terms of the deal, Midatech will acquire all of Bioasis Technologies’ shares in a $5.42 million transaction, officials of the British company said in a statement announcing the deal.
Upon completion of the merger, which is expected to occur at some point during the first quarter of 2023, the new company will be known as Biodexa Pharmaceuticals.
Deborah Rathjen,
Bioasis’ executive chairwoman, was not available to comment on whether the new company will maintain a presence in New Haven. The company’s current headquarters is at the Connecticut Financial Center on Church Street.
Biodexa will be considered a public limited company, which is the British equivalent of a publicly traded company in the United States.
Rathjen said in a written statement that the merger is beneficial to the company’s shareholders because “Bioasis shareholders will have access to the benefits of a NASDAQ listing through their ownership of Biodexa.”
Stephen Stamp, Midatech’s chief executive officer, will become Biodexa’s top executive once the deal is completed. Stamp said the merger will reposition the two companies into a single “emerging biotech company focused on the development of therapeutics for rare diseases, supported by Midatech and Bioasis’ enabling drug delivery platforms.”
Bioasis drug develop efforts are focused on developing drugs that can pass through what is known as the “blood-brain barrier” to treat brain cancers and other central nervous system disorders.
The blood-brain barrier is an important immunological feature of the central nervous system. It is made up of many cell types, and serves as a roadblock to any bacteria, fungi, viruses or parasites circulating in the bloodstream.
Bioasis was founded in British Columbia, Canada, and opened an office in Guilford in October 2017.