Raleigh-based DARA BioSciences is merging with U.K.-based Midatech Pharma in a deal that will give DARA shareholders a 16 percent ownership of Midatech.
The deal was announced Thursday.
DARA (Nasdaq: DARA) focuses on products aimed at helping cancer patients “adhere to their therapy and manage side effects arising from their cancer treatments.”
Midatech, which is based in Oxford, is developing an array of products.
“The opportunity for DARA to provide a commercial arm to Midatech in the United States is truly exciting for both companies. The agreement with Midatech provides DARA with the opportunity to maximize and expand DARA’s commercial portfolio based on the depth of resources that are now available within the combined company” said Christopher Clement, CEO of DARA BioSciences. “We are pleased to have a partner who understands the value of our strategy and positioning in oncology supportive care as well as the significance of our established commercial U.S. team. We are pleased to become part of Midatech and believe there is significant value in their portfolio of therapeutic products combined with our marketed products.”
DARA shuffled its management just a year ago with Clement becoming CEO.It also raised $6 million in a private placement in early 2014.
The company reported a loss of $3.2 million for the first quarter of this year.
