Redwood Pharma acquires intellectual property rights
Redwood Pharma has entered into an agreement regarding the acquisition of certain patent and patent applications, as well as clinical and preclinical data. Payment will occur through the issuance of 525,000 shares by Redwood Pharma.
CapaVision Ltd is a small company based in England that develops medicines in ophthalmology. CapaVision has led a development program within the area of Dry Eye Disease (DED). As part of their program, the company has a number of patent and patent applications in the US and EU that concern the use of estrogen as a therapy for DED. Redwood Pharma’s lead program is RP101, a treatment for chronic dry eye disease in postmenopausal women, where an estrogen analog is the active component. CapaVision’s patent and patent applications manifest clear synergies with and are a strong complement to the existing intellectual property rights in the development of RP101. CapaVision also has access to certain clinical and preclinical data relating hereto.
Through the agreement, Redwood Pharma acquires the patent and patent applications, as well as the data, for a consideration of SEK 5 124 000. The consideraton will be settled through the issuance by Redwood of 525,000 shares in the company to CapaVision at a subscription price of SEK 9.76 (corresponding to the closing price for the shares in Redwood Pharma on 7 March 2018). The resolution to issue new shares will be passed by the board of directors pursuant to the authorization granted by the annual general meeting on 15 May 2017 and subscription will take place no later than 13 March 2018. For existing shareholders, the share issue represents a 5.6% dilution of shares and votes.
CapaVision is restricted to not dispose of 225,000 shares for at least two months from today’s date and to not further dispose of an additional 225,000 shares until twelve months from today.
“I am very satisfied to make the agreement with CapaVision public. It gives us the opportunity to strengthen our future “freedom to operate” and at the same time strengthens our patent protection, especially if the current patent applications lead to the granting of patents. We consider the data included in the agreement valuable in connection with the application to begin our Phase II clinical trial this spring, and in future discussions with pharmaceutical companies”, comments CEO Martin Vidaeus.
This information is information that Redwood Pharma AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, 8 March 2018.
For more information:
Martin Vidaeus, CEO Redwood Pharma AB (publ)
Tel: +46 (0) 70 232 29 29
About Redwood Pharma
Redwood Pharma develops ophthalmic products for unmet medical needs. The company’s first project is the development of drug candidate RP101 with a known active substance against chronic dry eye in postmenopausal women who have moderate to severe symptoms. With the drug delivery platform IntelliGel® the release of active substances is controlled. Through the use of IntelliGel, Redwood Pharma can also improve dosing of other established drugs. Redwood Pharma’s strength lies in formulation and early clinical development. Revenues will be generated through licensing agreements with pharmaceutical companies that have capabilities to manufacture and sell commercial products worldwide.
Redwood Pharma AB (publ) is listed on AktieTorget, a Swedish Multilateral Trading Facility (Ticker: REDW.ST, ISIN: SE008294789).
For more information visit: www.redwoodpharma.com