CombinatoRx to merge with Canadian firm - Sacramento Business Journal:

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Under the terms of the agreement, Cambridge, Mass.-based CombinatoRx will issue shares of commoj stock to Neuromed stockholdersso that, post each companies’ shareholders will have 50 percent of the votingf power in the combined company. The deal is closeluy tied to a recent transaction that saw Neuromesd sell the commercial rightsz toits pain-management drug candidate Exalgpo to , a subsidiaryg of That agreement included an upfront paymeny of $15 million and several potential milestone paymentxs and related compensation if certain commercial benchmarksa are met. Those payouts also couled alter the ownership compositionm of the newlymerged company.
For if Exalgo is approvedd by thebefore 2010, CombinatoRx shareholders will see theifr ownership stake in the combined company slip to 30 If the drug does not win FDA approval by CombinatoRx shareholders will then assume a 70 percent ownership stake in the according to regulatory filings. Alexid Borisy will step down as president and CEO of CombinatoRsx to pursueother activities. Borisy will support CombinatoRx as a member of its scientificadvisory board, according to the The boards of directors of both CombinatoRx and Neuromec have approved the proposed merger transaction, whichb is subject to customary closing including receipt of various required approvalx from the CombinatoRx and Neuromed stockholders.
In May, CombinatoRxx (Nasdaq: CRXX) said it narrowe d its net loss for the firsft quarter amid aggressive cost cuttint that included laying off almost half its stafv and slashes to its research anddevelopment