Image Credit: Xortx
XORTX Therapeutics Inc., a leading late-stage clinical pharmaceutical company, aims to establish creative therapies for the treatment of progressive kidney disease and gout conditions, has signed a binding term sheet for the acquisition of Vectus Biosystems Limited’s renal anti-fibrotic therapeutic program, a leading Australian securities exchange-listed company. The programme involves a novel new chemical entity ‘VB4-P5’ along with its correlated regulatory documentation, manufacturing data and intellectual property. Recently, the program has been at the pre-IND (investigational new drug) level of establishment. This aims at prevalent and rare forms of kidney disease, covering the areas with highly unmet medical needs.
The chief executive officer of XORTX, Dr Allen Davidoff, said, “The chance to acquire the VB4-P5 program is an excellent decision. This program comes from a novel patented small molecule with robust preclinical evidence and comprehensive global patent protection. It is directly connected with our smart strategy aiming at establishing innovative therapies for progressive kidney disease, and it stands rooted in our mission to introduce new classes of treatments to rare renal disorders.”
The term sheet delivers for XORTX to obtain from Vectus its intellectual property is related to the data created by Vectus and the VB4-P5 compound from its efforts on similar assets, and the VB4-P5 small molecule. The consideration receivable by Vectus is worth USD $3.0 million. Further explained this amount as a payable in common share equivalents or only common shares of XORTX at an issuance price of around USD $0.86 per security. Involving the issue price, entitled to the adjustment in a few circumstances. Further, confirming that the issue price will not be below in minus than the discounted market price as mentioned in the policies paper of the TSXV on its last trading day before the issuance of this news.
The term sheet is entitled to the final closing of its documentation, and satisfactory for the conditions that are mainly considered for the transaction of this type, consisting of compliance with valid securities laws and stock exchange requirements and receipt of regulatory approval. The closing of the acquisition will be declared in less than 90 days from the date of the implementation of the term sheet. On Vectus' request, XORTX will execute its reasonable commercial initiatives for the registration of the securities with the SECs of the US. Alongside, Vectus will be a part of a voluntary lockup agreement, prohibiting sales of the securities by Vectus for around 180 days after its closing date.
Mansi Kadam is a market research writer with over 3 years of experience analyzing trends in the healthcare industry. At Towards Healthcare, she covers innovations in medical sector, sustainability initiatives, and the evolving regulatory landscape.
