Oxygen Biotherapeutics Inc. (NASDAQ:OXBT) which is a well known developer of oxygen-carrying therapeutics, has recently announced that it has signed a definitive agreement to take over some assets of Phyxius Pharma, which is a private biopharmaceutical company. OXBT will acquire exclusive rights to produce and sell Levosimendan in North America; it will also acquire three key executives from Phyxius Pharma into its own management team. The transaction which is estimated to at around $4.8 million in stocks and is based on Oxygen Biotherapeutics issuing at least 3.4 million shares of the common stock and securities to Phyxius Pharma as convertible common stock in a private placement.
Post the transcation the Co-Founder and CEO of Phyxius Pharma will become the CEO of Oxyen Biotherapeutics and the current interim CEO of OXBT who is also the CFO, Michael Jebsen will step down but he will continue in his position as the CFO of the company.
Levosimendan is a drug that is used to treat acute decompensated heart failure and is approved in at least 53 countries. It is licensed originally from a Finland based Orion Corporation which is one of the global healthcare giants.
This purchase will give OXBT the exclusive rights to Levosimendan, its development and commercialization in North America. Specifically the company has plans to use this drug to prevent and help treat low cardiac output syndrome, in addition to this it is also seeking FDA approval of Fast Track status for its Phase III trials.
Interim CEO and CFO of Oxygen Biotherapeutics Michael Jebsen said that post this transaction Oxygen Biotherapeutics will have a clear path of entry into the potential market of $600 million with a Phase 3 asset. He also said that with the Fast Track Status that was awarded and a Special Protocol Assessment allowing an agreed study, the drug could be just one trial away from being approved.
