Evofem Biosciences, Inc. and Neothetics Inc (NASDAQ:NEOT) have finalized a definitive deal under which the former firm will merge with a 100% owned subsidiary unit of Neothetics in an all-stock deal. The merger will place the combined firm with a prospect to become a major women’s health firm that commercializes and develops novel offerings. Upon closing of the deal, Neothetics will be under the leadership of Evofem CEO, Saundra Pelletier and will be renamed Evofem Biosciences, Inc.
The details
An affiliate of a current Evofem Biosciences’ shareholder, Invesco Asset Management Ltd., has finalized a securities purchase deal to buy an additional $20 million of common stock in the new firm immediately after the completion of the deal. Martha Demski expressed that after a thorough and extensive assessment of strategic options, they consider the proposed deal with Evofem Biosciences offers the best prospect to maximize value for Neothetics’ investors.
They consider the strength of the leadership team, together with the closure of its pregnancy prevention study, will allow Amphora® to reach notable value inflection points in the coming term. Saundra Pelletier, the CEO of Evofem Biosciences, reported that this concurrent financing and deal offers continued funding for Evofem Biosciences’ current Phase III trial of Amphora® as a vaginal contraceptive.
They anticipate to close the study database and submit for FDA review in the Q2 2019. In addition, they have expanded their Amphora® clinical advancement platform with prospective supplemental indications which would strengthen its position as a cornerstone treatment in hormone-free birth control as well as a preventative option for specific sexually transmitted infections.
Thomas Lynch, the Chairman of Evofem Biosciences, expressed that the company is positioned to become a major provider of women’s healthcare offerings with a truly differentiated and much needed offering. This deal with Neothetics establishes an even stronger base for the advancement of Evofem measures which will continue to enhance value for shareholders.
