Corgentech and AlgoRx Complete Merger Creating Late-Stage Company Addressing Pain Management and Inflammation
December 16 2005 - 7:00AM
PR Newswire (US)
Stockholders Approve One-for-Four Reverse Stock Split SOUTH SAN
FRANCISCO, Calif. and SECAUCUS, N.J., Dec. 16
/PRNewswire-FirstCall/ -- Corgentech Inc. (NASDAQ:CGTK) and AlgoRx
Pharmaceuticals, Inc. announced today that following stockholder
approval of the merger by the stockholders of both companies, the
merger was completed on December 15, 2005. The merger creates a
late-stage company with four clinical development candidates
focused on pain management and inflammation. In connection with the
merger, Corgentech stockholders also approved a one-for- four
reverse stock split, which was also effected on December 15, 2005.
Corgentech common stock will trade on the Nasdaq National Market on
a split- adjusted basis commencing December 16, 2005 under the
temporary symbol "CGTKD." After 20 trading days, the symbol for
Corgentech common stock will revert back to "CGTK." "We expect to
have four products in clinical trials in 2006, the most advanced
for which we expect to file a New Drug Application (NDA) during the
year," stated John P. McLaughlin, chief executive officer of
Corgentech. "Since the merger announcement in September, there have
been three positive clinical data updates on our products under
development in pain management, and we have completed enrollment in
both ongoing trials in inflammation. We look forward to providing
additional updates on our development progress in the coming year."
Deep Product Pipeline Addressing Significant Unmet Medical Needs
With a seasoned management team and a projected combined cash
position of $90 million at the end of 2005, Corgentech is
developing a deep pipeline addressing significant unmet medical
needs: -- ALGRX 3268 has had positive, statistically significant
results from two Phase 3 trials, and the company expects to file an
NDA during 2006 for the reduction of pain associated with
venipunctures and intravenous line placements. ALGRX 3268 is based
on a needleless injection system which accelerates lidocaine
particles, in powder form, into the epidermis in order to
anesthetize nerves. The product, which may be especially useful in
pediatric populations and emergency room settings, is easy to use
and anesthetizes quickly-generally in one minute-offering an
important advantage over currently available therapies. -- ALGRX
4975, a VR1 agonist, is being developed for site-specific, moderate
to severe pain. It is a C-neuron anesthetic, based on capsaicin. It
is long-acting, providing pain relief to many patients for weeks or
months after a single treatment. ALGRX 4975 has demonstrated its
potential in multiple clinical studies to impact pain in
neuropathic, post-surgical and musculoskeletal pain conditions.
Phase 2 clinical trials are currently underway for post-surgical
pain following a variety of surgeries including hernia repair,
total knee replacement and cholecystectomy. -- Avrina(TM) is a
highly selective and potent inhibitor of the transcription factor,
NF-kappaB, which is implicated in inflammatory diseases such as
eczema, asthma and inflammatory bowel disease (IBD). Recently
Corgentech completed enrollment in two Phase 1/2 multi-center,
randomized, double-blind, placebo-controlled trials evaluating the
safety and tolerability of applications of Avrina to the skin of
adult patients with mild-to-moderate eczema. Results from these
studies are expected in the first quarter of 2006. -- ALGRX 1207 is
a new class of anesthetic that is in preclinical development as a
topical local anesthetic. This product is expected to enter
clinical trials for cutaneous neuropathic pain, such as
chemotherapy-induced neuropathy, in 2006. This product candidate
may have a faster onset and longer duration of action as well as
improved penetration when compared with products currently on the
market. Under terms of the agreement, Corgentech has issued, and
AlgoRx stockholders have received in a tax-free exchange, shares of
Corgentech common stock such that AlgoRx stockholders own
approximately 62 percent of the combined company on a pro forma
basis and Corgentech stockholders own approximately 38 percent.
Corgentech's South San Francisco office will be the company's
headquarters with facilities as well in Secaucus, NJ. Following the
completion of the merger and the reverse stock split, Corgentech
has approximately 20.1 million shares outstanding. The proposed
merger transaction was first announced in a joint press release on
September 26, 2005. About Corgentech Corgentech is a
biopharmaceutical company focused on the development and
commercialization of novel therapeutic treatments for pain
management and inflammation. Corgentech is based in South San
Francisco, CA. For more information on the company, please visit
http://www.corgentech.com/. Forward Looking Statements This press
release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities
Litigation Reform Act of 1995. Words such as "expect," "estimate,"
"project," "budget," "forecast," "anticipate," "intend," "plan,"
"may," "will," "could," "should," "believes," "predicts,"
"potential," "continue," and similar expressions are intended to
identify such forward-looking statements. Forward- looking
statements in this press release include, without limitation,
clinical results forecasts of product development, FDA filings and
other matters that involve known and unknown risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied by this press release. Such risk
factors include, among others: whether Corgentech can successfully
develop new products and the degree to which these gain market
acceptance. Actual results may differ materially from those
contained in the forward- looking statements in this press release.
Additional information concerning these and other risk factors is
contained in Corgentech's Form S-4 as well as Corgentech's Form
10-K/A for the year ended December 31, 2004 and most recently filed
Form 10-Q. Corgentech undertakes no obligation and does not intend
to update these forward-looking statements to reflect events or
circumstances occurring after this press release. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement. DATASOURCE: Corgentech Inc. CONTACT: Jennifer
Cook Williams, Senior Director, Investor Relations of Corgentech
Inc., +1-650-624-9600, or Web site: http://www.corgentech.com/
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