Cary, North Carolina and Lexington, Massachusetts– Critical
Therapeutics, Inc. (NASDAQ: CRTX) and Cornerstone BioPharma Holdings, Inc., a privately-held company, today announced the signing of a definitive merger agreement.
Cornerstone is a specialty pharmaceutical company focused on developing and commercializing prescription medications for respiratory disorders. The stock-for-stock transaction is targeted to close in the fourth quarter of 2008.
“The merger between Critical Therapeutics and Cornerstone creates a specialty pharmaceutical company focused on respiratory diseases,” said Trevor Phillips, Ph.D., president and chief executive officer of Critical Therapeutics. “It brings together
Cornerstone’s suite of products marketed to respiratory specialists with Critical Therapeutics’ ZYFLO CRTM (zileuton) extended-release tablets for the treatment of asthma.
After reviewing alternatives during a strategic review process over the past six months, we believe that the product synergies created by a merger with Cornerstone offer the best
opportunity to drive stockholder value.”
Craig Collard, Cornerstone’s president and chief executive officer, said, “We believe this transaction will allow both companies to maximize the value of our marketed products and better exploit our commercial resources. We believe that the critical mass we aim to achieve as a specialty pharmaceutical company can enhance significantly our standing in the market.”
The principal commercial assets of the combined company will comprise a number of marketed products including the following:
• ZYFLO CRTM: FDA-approved ZYFLO CR™ (zileuton) extended-release tablets, a leukotriene synthesis inhibitor for the prophylaxis and chronic treatment of asthma in adults and children 12 years of age and older. ZYFLO CR is not indicated for use in the reversal of bronchospasm in acute asthma attacks;
• Spectracef®: FDA-approved Spectracef® (cefditoren pivoxil), a thirdgeneration cephalosporin for the treatment of pathogens commonly associated with respiratory diseases in adults and adolescents 12 years of age and older; and
• AlleRx®: AlleRx® Dose Pack family of products used for the temporary relief of symptoms associated with allergic rhinitis.
Product Development Plans
The combined company’s clinical and preclinical pipeline will include a number of product candidates. The combined company will implement a strategic review of its product development pipeline and is expected to pursue line extensions of Spectracef® as part of the life cycle plan for that product with any new products targeted for launch during the two years following the closing of the transaction. Following the strategic review, the combined company may seek to maximize the value of any non-core programs through out-licensing, divestiture or spin-off transactions.
The combined company will be named Cornerstone Therapeutics Inc. and will be headquartered at Cornerstone’s offices in Cary, North Carolina.
http://www.cornerstonebiopharma.com/news/pr_2008_05_01.pdf