Inotek Pharmaceuticals Corp (NASDAQ:ITEK) announced recently the merger agreement with Rocket Pharmaceuticals Ltd. The merged company will concentrate on developing and advancing the pipeline gene therapies of LentiViral Virus (LVV) and Adeno-Associated Virus (AAV) therapies for treatment of rare medical conditions. The new company will retain the Rocket Pharmaceuticals brand name and headquartered in the New York City.
David P. Southwell, president and CEO at Inotek stated that merging with Rocket is beneficial to all its stockholders. Inotek has conducted several studies that have recognized a high number of unmet medical needs and that the partnership would help them to advance therapies that meet the requirements for the rare diseases.
With Rocket being the leader in developing highly effective gene therapies for patients suffering from the rare genetic indications, such as the bone marrow or organ transplants, the new combined company will receive the necessary financial support. Furthermore, the company will be managed by Gaurav Shah, MD, at Rocket who previously led a CART-19 Global Program in the development of Cell and Gene Therapies at Novartis.
Gaurav is expected to work with the Rocket’s gene therapy and rare disease drug enhancement experts. The recommended changes will provide essential requirements that will accelerate the expansion of Rocket’s five key programs.
Rocket’s merger with the struggling Inotek has made it to go public. Rocket is expected to take up about 81% of the combined company and Inotek taking remainder. The definite amount for the duo will largely depend on the available cash that Inotek has at hand at the time when the deal closes, which is expected in the commencement of 2018. The first trials from the programs are also expected to be out within next year.
For Inotek, the move to merge with Rocket is fueled by a failed attempt to develop a drug known as trabodenoson intended to treat glaucoma. After the Phase III trials was flucked down, Inotec decided to explore strategic options which included merging with a stable company and or selling part of its units.
