Under the terms of the agreement, each outstanding share of Cequent common stock will be exchanged for MDRNA common stock at an exchange ratio that implies a purchase price for Cequent shareholders of approximately $44 million, plus an additional value of $2 million to warrant and option holders, based on the 10 day volume-weighted average price (VWAP) of MDRNA shares on March 31, 2010.
is acting as financial advisor and Pryor Cashman LLP as legal advisor to MDRNA on this transaction.
MDRNA said that the combined group will have multiple proprietary RNAi drug discovery platforms with the capability to deliver RNAi-based therapeutics via systemic, local and oral administration.
Through this acquisition MDRNA will expand its oncology pipeline with a product for Familial Adenomatous Polyposis (FAP), a genetic disorder that is a precursor to colon cancer, that will soon begin Phase 1 clinical testing.
Barry Polisky, chief scientific officer of MDRNA, said that the BNA technology provides MDRNA with a unique position in the development of RNA therapeutics.
With the addition the of the BNA patent estate, MDRNA owns or controls 15 issued or allowed patents, and has 37 pending patent applications, 126 pending foreign patent applications and 7 PCT applications.
Houston was previously Vice President of Chemistry and Formulations at MDRNA