Cortendo Adds Two Late-Stage Assets & Announces Related $33.2 Million Financing
Cortendo AB recently announced it has entered into an agreement to acquire Aspireo Pharmaceuticals’ Somatoprim (DG3173), an investigational compound being studied for the treatment of acromegaly. Cortendo also recently announced entering into an exclusive licensing agreement for commercialization rights to Antisense Therapeutics’ ATL1103 for endocrinology applications. Additionally, Cortendo announced it has entered into an agreement to raise approximately $33.2 million in a new private placement.
Cortendo has entered into an agreement to acquire Aspireo Pharmaceuticals’ DG3173, a next-generation, somatostatin analog (SSA) with a unique receptor affinity profile, being investigated for the treatment of acromegaly, with potential additional applications in Cushing’s Syndrome and neuroendocrine tumors.
Under the terms of the acquisition agreement, Cortendo will provide Aspireo Pharmaceuticals approximately $30 million in Cortendo equity for Somatoprim (DG3173). The completion of the acquisition of Somatoprim (DG3173) is subject to, among other things, shareholder approval at the Annual General Meeting (AGM), which is scheduled to be held on or about June 24, 2015. This acquisition is expected to be completed shortly after the AGM.
In addition, as part of Cortendo’s related round of financing, TVM Capital, Aspireo’s primary shareholder, will purchase $4.25 million of Cortendo shares.
“The addition of two novel, late-stage investigational compounds for the treatment of rare endocrine disorders, DG3173 and ATL1103, coupled with our existing Phase III asset for endogenous Cushing’s Syndrome, COR-003, establishes the cornerstone of Cortendo’s rare endocrine disease franchise and demonstrates our commitment to becoming a leader in providing innovative therapeutic options to patients with rare diseases,” said Matthew Pauls, President and Chief Executive Officer of Cortendo. “There are significant unmet needs in the diagnosis and treatment of both endogenous Cushing’s Syndrome and acromegaly, and we are passionate about the opportunity to simultaneously advance development of COR-003, DG3173, and ATL1103 and commence pre-commercialization activities, and to ultimately provide these patients and the physicians who treat them with novel therapeutic options,” Pauls added.
Cortendo has entered into an agreement to raise approximately $33.2 million in a new private placement, the proceeds of which will be used for continued development of COR-003 along with the planned development of the two new programs. The subscription price is $1.322 per share and up to 25,128,559 new shares will be issued to the investors.
New institutional investors in this round of financing include Longwood Capital, TVM Capital and Granite Point Capital. Additionally, several existing investors, including RA Capital, New Enterprise Associates, Broadfin Capital and HealthCap, have also extended their investments in Cortendo through this round of financing.
Notably, in addition to investing in Cortendo as part of the acquisition of Aspireo Pharmaceuticals’ DG3173, TVM Capital will invest an additional $4.25 million in the announced private placement.
The financing is subject to shareholder approval of the AGM, which is scheduled to be held on or about June 24, 2015, and is subject to certain other conditions, including expected gross proceeds of at least $20 million and the non-occurrence of any material adverse effects (as defined in the agreement with the investors) prior to completion.
“We appreciate the support of all of our investors and their confidence in Cortendo’s ability to develop and commercialize novel therapeutics for the treatment of rare endocrine disorders and other rare diseases,” said Matthew Pauls, President and Chief Executive Officer of Cortendo.
Cortendo AB is a biopharmaceutical company incorporated in Sweden and based in the US. Cortendo’s strategic focus is to be a leader in commercializing innovative medicines for rare endocrine disorders and other rare diseases. Cortendo’s lead product candidate, COR-003 (levoketoconazole), is a cortisol inhibitor that is currently being studied in the global Phase III SONICS trial for the treatment of endogenous Cushing’s syndrome. COR-003 (levoketoconazole) has received orphan designation from both the European Medicines Agency and the US FDA. Cortendo’s intent is to independently commercialize its orphan/endocrine assets in key global markets. For more information, visit www.cortendo.com.
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