Bioasis Technologies Inc., a New Haven-based biopharmaceutical company, announced this week that it has reached an agreement to merge with U.K.-based Midatech Pharma.
Bioasis is working to develop drugs that can cross the brain’s filtering mechanism, known as the blood-brain barrier, to treat brain cancers and other central nervous system disorders. According to Bioasis, the delivery of therapeutics across the blood-brain barrier “represents the final frontier in treating neurological disorders.”
Midatech, headquartered in Cardiff, Wales, is a drug-delivery technology company.
Midatech separately announced the planned acquisition of Bioasis for £4.4 million, or approximately $5.5 million.
The combination of Bioasis and Midatech will create a rare and orphan disease company with a new name: Biodexa Pharmaceuticals PLC.
Deborah Rathjen, Bioasis’ executive chair, said the transaction and formation of Biodexa is expected to help boost Bioasis’ pipeline.
“Once the transaction is closed, Bioasis shareholders will have access to the benefits of a NASDAQ listing through their ownership of Biodexa,” Rathjen said. “We are very excited by the prospects for this transaction given the evident synergies between Bioasis and Midatech.”
Rathjen said via email Wednesday that the intention at this time is to maintain the New Haven presence.
Stephen Stamp, Midatech CEO and incoming Biodexa CEO, said of the agreement, “We have the opportunity to reposition the enlarged group as an emerging biotech company focused on the development of therapeutics for rare diseases, supported by Midatech and Bioasis’s enabling drug delivery platforms.”
Biodexa will benefit from the collective scientific, technical, and operational expertise of both Midatech and Bioasis, according to the companies. They anticipate realizing cost savings with the merger through the elimination of duplicative salaries, administrative and regulatory costs, and other public company expenses.
The agreement, dated Dec. 13, is subject to financing and shareholder approvals. It is expected to be finalized in the first quarter of 2023.
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
