Therapix Biosciences (TRPX), a Givatayim-based company that develops drugs derived from cannabis, has announced that it is being acquired by Canadian company FSD Pharma Inc. (HUGE.CN) (FSDDF) (0K9.F). The acquisition price is $48 million of FSD Pharma shares. FSD Pharma is traded on the OTC market in New York and on the alternative Canadian stock exchange CSE. On the basis of FSD Pharma's share price, the acquisition price represents a premium of 211% on Therapix Biosciences' price in trading yesterday. In the past year, Therapix Biosciences' share price has dropped 19%.
The announcement of the acquisition deal came shortly before the close in New York. Therapix Biosciences' share price rose 3%, giving the company a market cap of $15.4 million, and in after-hours trading it rose a further 58%. FDS Pharma's share price fell 19.6% following the announcement, bringing its market cap to $489 million.
The announcement stated that "The Transaction combines two highly-complementary businesses and creates a medical cannabis industry innovator focused on the research and development of advanced cannabinoid treatments."
"The intended acquisition of Therapix Biosciences at this time is a pivotal step in the evolution of our company by entering the high-value medical cannabis market. In addition to growing products for the direct to consumer retail cannabis market in Canada , we are now developing a new class of novel cannabinoid-based treatments for several central nervous system disorders, including chronic pain, fibromyalgia, irritable bowel syndrome and several other disease areas. With this acquisition, FSD Pharma is signaling our commitment to furthering very high-value pharmaceutical R&D clinical programs centered on cannabinoid molecules, a number of which are actively under way at several distinguished medical institutions across the globe," said Dr. Raza Bokhari , a director of FSD Pharma and chairman of the M&A committee.
Therapix chairman and interim CEO Ascher Shmulewitz said, "We are excited to join FSD Pharma to be part of one of the fastest growing, most forward-thinking companies in this sector Our proprietary technologies and active, mature clinical research programs are focused on delivering safer, more effective cannabinoid-based products that address a broad spectrum of large-market diseases with high unmet clinical needs."
Professor Raphael Mechoulam, who co-discovered "the entourage effect" of the endocannabinoid system, and is chairman of the Therapix Scientific Advisory Board said, "I hope this proposed transaction will help unlock the full potential of the endocannabinoid system within the human body in enhancing quality of life and improving treatment outcomes."
The transaction is expected to be completed by the first quarter of 2019, subject regulatory approvals and approval by the shareholders of Therapix.
Published by Globes, Israel business news - en.globes.co.il - on October 23, 2018
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