Seeking cash to fund PhIII for once-failed drug, Adynxx rides Alliqua's shell to Nasdaq
When Adynxx conceded that its non-opioid pain drug failed in Phase II, it vowed to hold out for a Phase III where it would focus on a subgroup of patients. Six months later, it is planning to tap the public market for the cash to back their move.
The biotech has inked an all-stock deal with Alliqua BioMedical to reverse merge its way onto Nasdaq. When it wraps up in 2019, the transaction would give Adynxx shareholders 86% control of the new company, which will have the same name.
Alliqua will move its headquarters to San Francisco while “exploring alternatives for our 16,500 square foot GMP custom hydrogel manufacturing facility in Langhorne, Pa. to maximize value for our shareholders,” according to CEO Dave Johnson.
“Following this transaction, our goal is to accelerate the development of brivoligide to benefit patients that would otherwise experience greater pain and higher levels of opioid usage following surgery,” said Adynxx CEO Rick Orr in a statement. “We also plan to build a robust pipeline of novel therapeutics for pain and inflammation through development of our earlier-stage internal programs, our ongoing discovery collaboration leveraging artificial intelligence, and additional in-licensing activities.”
In the Phase II, investigators failed to see a statistical benefit on the pain catastrophizing scale of brivoligide over a placebo, but found hope in patients with high PCS scores. Adynxx is now proposing the drug as a treatment of postoperative pain with PCS scores of 16 or higher.