Wednesday, February 6, 2008

Dynogen going public in reverse merger with California firm

Dynogen Pharmaceuticals Inc., a privately held biotech in Waltham, reports plans to become a public company through a reverse merger with publicly traded Apex Bioventures Acquisition Corp. of California.

Lee Brettman, CEO of Dynogen, revealed the potential of the biotech going public to Mass High Tech in January, but did not disclose details of the deal.

The deal between Dynogen and Apex, approved by both companies' boards of directors, would keep the merged entity based in Waltham under the name Dynogen Pharmaceuticals with Brettman serving as CEO. Apex Bioventures chairman Darrell Elliott is expected to become chairman of the merged company.

Under the terms of the deal, Dynogen would merge with a subsidiary of Apex and its shareholders would receive $98 million in shares of Apex stock and own 56 percent of the merged company. The firm would have about $65 million in cash after closing the deal to fund late clinical trials and research of its drugs for gastrointestinal and urinary tract disorders, according to the companies. Dynogen shareholders are eligible to garner two payments of up to $23 million in Apex stock if the firm meets certain goals in its clinical trials.

Dynogen, founded in 2002, has raised $67 million in venture capital and has two drugs for irritable bowel syndrome on track to enter Phase 3 clinical trials over the next two years, Brettman previously told Mass High Tech.