contractpharmaOctober 22, 2020
Tag: Cytocom , Cleveland , merger
Cytocom Inc., a biopharmaceutical company specialized in the area of immune-modulation, and Cleveland BioLabs Inc., an innovative biopharmaceutical company developing novel approaches to activate the immune system, have entered into a definitive merger agreement to combine their businesses in an all-stock transaction.
Cytocom shareholders will have a majority position in the newly combined entity, which the parties anticipate will continue to be listed on the Nasdaq, and the initial Board of Directors for the combined company will consist of four members selected by Cytocom and three members selected by Cleveland BioLabs. The Boards of Directors of both companies have approved the combination.
Each party to the proposed merger believes that the combined company will create near-term commercial opportunities in numerous areas of significant unmet medical needs including acute radiation injury, oncology, infectious disease, inflammation and autoimmune-mediated conditions, with multiple commercial, regulatory and clinical milestones expected over the next 12 to 18 months. The combined company will operate as "Cytocom Inc." under the leadership of Cytocom's experienced management team.
“Our merger with Cleveland BioLabs and its subsequent immune-focused platform will be a transformative growth opportunity for Cytocom and Cleveland BioLabs shareholders. We believe that the combination of these highly complementary late-stage pipelines will strengthen our position and advance our efforts to unlock the potential of immune-modulating agents in the treatment of serious medical conditions,” said Michael K. Handley, president and chief executive officer of Cytocom. " Further, this merger will enhance our ability to become a recognized leader in immune-modulating treatments and builds on the momentum created by our recent acquisition of ImQuest Life Sciences. We plan to utilize the combined platform to further drive value with additional clinical and commercial products and continue to seek strategic partnerships and acquisitions."
Dr. Andrei Gudkov, chief scientific officer of Cleveland BioLabs, added, "This is an exciting day for Cleveland BioLabs and a great opportunity for our stockholders. The merger with Cytocom will allow us to add the strength of our science and bright perspectives associated with Entolimod development in cancer treatment and radiation defense arenas with a string of immunomodulators developed by Cytocom to form a powerful blend of conceptually and scientifically aligned products. We believe that the merger with Cytocom is the ideal way to unlock the value of our technology platform and our lead drug candidate, Entolimod, and I look forward to seeing this exciting new therapy advance through the clinic."
The proposed transaction is subject to customary closing conditions. Cytocom and Cleveland Biolabs expect the transaction to close during the first quarter of 2021.
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