Intec Pharma (NSDQ:NTEC) announced that it entered into a definitive agreement over a merger with Decoy Biosystems.
Jerusalem-based Intec Pharma said in a news release that the combined company is slated to grow an immunotherapy platform to battle a variety of tumor types and chronic viral infections with Decoy bringing to the table multi-targeted products that prime both innate and adaptive anti-tumor and anti-viral immune responses.
Intec develops the Accordion Pill, an oral drug delivery system designed to improve the efficacy and safety of existing drugs and drugs in development through gastric retention and specific release mechanism.
Decoy previously held a pre-investigational new drug meeting with the FDA ahead of its plans to file an IND in the second half of this year. The company is looking to launch a Phase 1 clinical trial in 2022 to observe its therapies in targeting tumors and lymphomas.
Under the agreement, upon completion of the merger, former Decoy stockholders are expected to own approximately 75% of the combined company, while Intec shareholders will own the other 25% or so.
The actual allocation will be subject to adjustment based on the companies’ net cash balance at the time of closing and the amount of closing financial raised. Both companies’ boards approved the transaction, which is expected to close in the third quarter of 2021, subject to shareholder approval, the domestication of Intec Pharma to Delaware, the disposition of Intec’s Accordion Pill business, the raising of closing financing and the continued listing on the Nasdaq, along with other customary closing conditions.
Intec CEO Jeffrey Meckler will lead the combined company as CEO with Decoy founder & CEO Michael Newman serving as CSO and Dr. Roger Pomerantz holding the role of chairman. The board will have eight members, five of which being current members of Intec’s board, with the other three serving on Decoy’s board.
“Decoy’s bacteria-based platform is a novel modality which has the potential to dramatically change how we treat cancer and chronic viral diseases,” Pomerantz said in the release.
“This transformative transaction provides Intec with a robust clinical pipeline based on a novel immunotherapy platform and gives Intec entrée into the exciting area of immuno-oncology,” added Meckler. “Our transition into immune-oncology leverages Intec’s senior-level expertise and offers an exciting, potential value-creating opportunity for our shareholders.”
