Kalytera buys Israeli cannabis co Talent Biotech

medical cannabis

The Canadian therapeutics firm will pay $10 million plus shares and $20 million in milestone payments for the Israeli GvHD treatment developer.

Canadian company Kalytera Therapeutics, Inc. (TSX-V:KALY) has completed the acquisition of Israeli medical cannabis developer Talent Biotechs Ltd. Talent is a privately held, Bnei Brak-based company evaluating the use of CBD to prevent and treat Graft versus Host Disease (GvHD).

Kalytera CEO Andrew Salzman said, “We feel incredibly fortunate to be continuing Talent’s groundbreaking work in GvHD. There are currently few options to prevent or treat persons with GvHD, a large and critically underserved market. The results of Talent’s Phase 2 clinical studies are unprecedented, and mark a major milestone in the potential prevention and treatment of this severe and life-threatening disease. We are encouraged by the data and seek to rapidly advance the GvHD program into FDA Phase 2b clinical studies.”

Kalytera COO and CFO Robert Farrell said, “This is a transformational transaction for Kalytera. Multiple studies have demonstrated that CBD, a non-psychoactive cannabis constituent, possesses remarkable therapeutic potential across a broad range of diseases and disorders. The acquisition of Talent and its late-stage GvHD program significantly advances Kalytera’s position as an emerging leader in CBD pharmaceuticals. We expect our work in GvHD to be the first of many programs that seek to investigate and commercialize this important compound.”

Kalytera has made cash payments to Talent totaling $10 million. Kalytera has also issued 17,301,208 common shares to Talent, which securities will be subject to a contractual hold period expiring December 30, 2017. Subject to the completion of certain milestones in relation to the development and commercialization of the GvHD program, Kalytera will pay up to $20 million in aggregate future contingent payments. Kalytera shall also issue to Talent an additional 2,883,535 common shares upon the completion of the first Phase IIb clinical study, and a further 2,883,535 common shares upon the issuance of the first patent by the USPTO or EU with respect to certain assets of Talent. The shareholders of Talent will also receive earn-out payments of 5% of the aggregate annual net sales of all products covered by patent rights included in its business.

Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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