Dallas-based Access Pharmaceuticals signs definitive merger agreement with Somanta Pharmaceuticals

by PegNews wire

The two drug companies will merge, creating powerful new hybrid drugs in the process.

DALLAS — Access Pharmaceuticals, Inc. and Somanta Pharmaceuticals, Inc. announced today that they have signed a definitive merger agreement by which Access will acquire Somanta. The companies had previously announced the execution of a non-binding Letter of Intent regarding the merger.

Under the terms of the merger agreement, Access will issue 1.5 million shares of common stock to Somanta stockholders in exchange for all the outstanding capital stock of Somanta. The merger agreement has been approved by the boards of both companies. In addition, Access has received voting agreements from certain Somanta shareholders representing approximately 81% of Somanta's outstanding common shares and approximately 60% of its outstanding preferred shares. The parties expect the transaction to be completed during the summer.

Photo not provided by Access Pharmaceuticals

With the merger, the two drug companies can now produce some form of "super" pill, such as the one pictured above

With the proposed acquisition of Somanta, Access will acquire four novel anti-cancer compounds in development, one of which is currently in Phase 2 clinical trials. Each of the drug candidates acts by a unique mechanism of action and has the potential to target a wide range of cancer types.

"We believe this transaction will immediately strengthen our drug pipeline, enhancing Access' franchise value within the oncology space," commented Stephen R. Seiler, Access' President and CEO. "In addition to offering a clinical-stage drugcandidate, Somanta's pre-clinical pipeline is highly diversified with each anti-cancer compound having its own novel mode of action, which can be applied to a wide range of cancer types."

Access Pharmaceuticals, Inc. is an emerging biopharmaceutical company that develops and commercializes propriety products for the treatment and supportive care of cancer patients. Access' products include ProLindac(TM), currently in Phase II clinical testing of patients with ovarian cancer and MuGard(TM) for the management of patients with mucositis.

Source: Access Pharmaceuticals