California-based biopharmaceutical company Ruthigen and inhaled drug developer Pulmatrix have announced a definitive merger agreement under whose terms Pulmatrix will become a wholly-owned subsidiary of Ruthigen. According to the announcement, conversion of Pulmatrix’s outstanding debt and equity securities into Ruthigen common stock will account for over 80% of Ruthigen’s outstanding common stock. Pulmatrix raised $4.5 million in February 2015 in preparation for the merger, the companies said.
After completion of the merger, Ruthigen will change its name to Pulmatrix and will focus on developing Pulmatrix’s iSPERSE inhaled drugs. Pulmatrix President and CEO Robert Clarke will become President and CEO of the merged company.
Clarke commented, “We believe that a merger with Ruthigen provides a strong financial foundation with enhanced access to capital to further Pulmatrix’s mission of innovative inhaled product development for patients with significant unmet needs in respiratory disease. This transaction represents an excellent opportunity to advance our novel iSPERSE inhaled dry powder platform and lead CF candidate into clinical development and to meet our long-term growth objective of building a leading company around a robust pipeline for respiratory disease.”
Last year, Pulmatrix announced positive Phase 1b results for its PUR0200 DPI for the treatment of COPD. The company is also developing several products for the treatment of respiratory infections in cystic fibrosis patients and has received funding from the Cystic Fibrosis Foundation Therapeutics.
Ruthigen was incorporated in 2013 as a subsidiary of Occulus Innovative Sciences. It has been developing a hypochlorous acid-based formulation for use as an anti-infective during abdominal surgeries.
Read the Pulmatrix and Ruthigen press release.
