Canadian speciality pharmaceutical company PharmaDrug has agreed to acquire all the issued and outstanding shares of Securedose Synthetics.

SecureDose is a private pharmaceutical research and development firm. It is dedicated to creating synthetic versions of already available drugs for possible distribution and commercialisation.

The proposed transaction is expected to be effected by way of a three-cornered amalgamation between Pharmadrug, SecureDose and a wholly-owned subsidiary of PharmaDrug.

With the acquisition, PharmaDrug plans to enhance its existing focus by gaining access to the capacity to produce proprietary formulations that may be commercialised more quickly than full-cycle biotech programmes.

According to the terms of the definitive agreement, each issued and outstanding share of SecureDose will be exchanged for one common share in PharmaDrug’s capital.

The research and development firm anticipates having 31,500,000 SecureDose Shares issued and outstanding at the time of the proposed transaction’s conclusion, in addition to 7,500,000 common share purchase warrants and 525,100 finder warrants.

Upon completion of the deal, PharmaDrug will acquire full ownership of SecureDose Synthetics. The proposed acquisition is an arm’s length transaction.

PharmaDrug CEO and chairman Robert Steen said: “We are extremely excited to sign the agreement to acquire SecureDose. With the cepharanthine programme now back in full swing, the Company believed it made sense to acquire a company whose core competency is the development of synthetic formulations.

“This could give PharmaDrug the capability to develop formulations of existing drugs that don’t necessarily require separate efficacy studies and potentially provide commercialisation and revenue opportunities in a much shorter time frame.”

The proposed transaction is subject to several factors, including the fulfilment of customary closing conditions and the receipt of all necessary shareholder and regulatory approvals as well as the final approval of the Canadian Securities Exchange.

It is expected to be completed by early November this year.