FREE

Biodexa Pharmaceuticals - Acquisition of Varian Bio to bolster pipeline

Biodexa has announced that it has signed a non-binding letter of intent to acquire Varian Biopharmaceuticals, a privately held US-based biopharma company developing a small molecule atypical protein kinase C iota (aPKCi) inhibitor for treating cancer. Varian’s pipeline comprises lead candidate VAR-101 (basal cell carcinoma, BCC) and VAR-102 (solid tumors), both in preclinical development. The proposed acquisition is in line with Biodexa’s strategy to expand its oncology-focused pipeline following its recent repositioning as a therapeutics company. The proposed terms include issuing 10m American depository shares (ADSs) as an initial consideration (which translates to c $3m at Biodexa’s current share price), resulting in Varian stakeholders owning c 34% of the combined business, post consolidation. A further 6m ADSs will be issued based on meeting predefined clinical and regulatory milestones pursuant to the deal, Biodexa also plans to raise a minimum of US$7m in net proceeds to fund the Phase I study for VAR-101, expected to start in Q124.