BioZone Pharmaceutical, a public pharmaceutical company that specializes in drug development, manufacturing, and marketing, has signed a letter of intent (LoI) to merge with Cocrystal Discovery.
Cocrystal Discovery has breakthrough technologies that enable the creation of first- and best-in-class antivirals. Cocrystal has previously received strategic investments from Teva Pharmaceuticals (TEVA), Opko Health (OPK), and The Frost Group. Opko Health and The Frost Group together own approximately 40 per cent of Cocrystal Discovery.
The company has five therapeutic programmes targeting the hepatitis C Virus (HCV), influenza, the Human Rhinovirus (HRV), dengue, and the norovirus.
Cocrystal Discovery existing CEO and chairman Dr Gary Wilcox will become the CEO and chairman of the combined company.
Dr Wilcox said, "We believe this merger will significantly enhance our ability to bring our small molecule inhibitors of the viral replication complex to market."
"Drs Frost and Hsiao have a proven track record of driving healthcare innovation while creating significant value for shareholders. We believe in our ability to discover oral, once-a-day, broad-spectrum antiviral drug candidates targeting the polymerase enzyme of the hepatitis C virus. Our other first-in-class therapeutic programmes have the potential to be billion dollar opportunities as well."
Under the terms of the merger agreement, current shareholders of Biozone Pharmaceuticals and Cocrystal Discovery will own approximately 40 per cent and 60 per cent of the combined company, respectively.
The merger is expected to close at the end of 2013, and is subject to customary conditions to closing as detailed in the Merger Agreement. The structure of the transaction will be in the form of a reverse merger with Cocrystal Pharma as the surviving corporation and will now be headquartered in Bothell, Washington.
Cocrystal Discovery is a privately-held biotechnology company developing antiviral therapeutics for human diseases.