Recipharm has made an equity investment in Synthonics Inc. and purchased $2.0 million of preferred stock in the company.
An additional $2.0 million of preferred stock is expected to be purchased upon Synthonics’ achievement of certain milestones, which could occur during 2016, according to information from Recipharm. Synthonics and Recipharm also have entered into a joint development agreement under which Synthonics gains access to Recipharm’s expertise in drug development, marketing and manufacturing in exchange for a royalty payment on certain of Synthonics’ compounds. Synthonics has developed a unique drug delivery technology for metal coordination of pharmaceutical APIs.
As part of the investment agreement, Recipharm’s Executive Vice President, Technology and Development Carl-Johan Spak has joined Synthonics’ board of directors.
“Synthonics is delighted to extend the partnership with Recipharm to help advance promising molecules to market,” says Synthonics’ CEO Ken Slepicka. “We are very impressed with Recipharm’s formulation and development teams and expect this agreement and financial support to help us further advance several of our current projects to commercialization.”
“This transaction expands our footprint within the U.S. and builds upon our existing Joint Marketing Agreement with Synthonics,” says Spak in a statement from Recipharm. “In addition, it gives us an opportunity to share in the upside of Synthonics’ chemistry, which we believe offers an elegant and cost-effective means to create patentable drugs that address difficult absorption and delivery issues. We believe that this collaboration will enhance our ability to serve our customers with exciting drug delivery solutions.”