Boston, MA 11/05/2013 (wallstreetpr) – Oxygen Biotherapeutics Inc. (NASDAQ:OXBT) which is a producer of oxygen-carrying therapeutics, has announced that it has signed a definite deal to take over some Phyxius Pharma. OXBT will take over exclusive rights to manufacture and market Levosimendan in North America; it and also will acquire three key managers from Phyxius Pharma and induct them into its own management team.
The estimated value of the deal is said to be $4.8 million in shares and is based on Oxygen Biotherapeutics issuing a minimum of 3.4 million shares of its common shares and securities to Phyxius Pharma as convertible common shares in a private placement.
After the deal is completed the Co-Founder and CEO of Phyxius Pharma will take over as the CEO of Oxyen Biotherapeutics and the current part time CEO of the company who is also its CFO, will step down from his part time job but continue to be the CFO of the company.
Levosimendan is a medication used to treat acute decompensated heart failure and is approved for sale in at least 53 nations. It original license holder was Finland based Orion Corporation.
This deal will give OXBT the exclusive rights to develop and market Levosimendan, in North America. The company has plans in place to use this drug to low cardiac output syndrome, and additionally it is seeking FDA approval for Fast Track status for its Phase III trials.
Speaking on the deal the part time CEO and CFO of Oxygen Biotherapeutics Michael Jebsen said that after the deal is complete his company will have a clear entry path into the probable market of $600 million with an asset in Phase 3. The CFO also said that with the fast track status and a Special Protocol Assessment being allowed, the drug had just one trial to pass before getting approved.
