Capital Infusion: Deal Spotlight: Patton Boggs Advises on Complex and Innovative Strategic Oncology Company Acquisition

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Patton Boggs recently advised Intezyne Technologies, Inc. located in Tampa, Florida on its acquisition of Niiki Pharma, Inc. of Hoboken, New Jersey. The acquisition of Niiki Pharma significantly expands Intezyne’s portfolio of cancer treatment drugs and enhances Intezyne’s market valuation. Intezyne is a privately-held clinical stage drug development company focused on improving the treatment of cancer. Its unique and breakthrough nanotechnology platform, the IVECT(TM) Method, was invented by Intezyne’s co-founders, Habib Skaff, PhD, and Kevin Sill, PhD, synthetic chemists specializing in nanotechnology and polymer chemistry. IVECT-derived nanoparticles can be generated around a broad array of drugs, from small molecules to peptides/proteins to nucleic acids, making the platform highly versatile in its applicability and scope. The most advanced asset Intezyne acquired as part of the Niiki Pharma acquisition is a first-in-class GRP78 suppressor, which has demonstrated significant potential in patients with neuroendocrine tumors. Intezyne’s product pipeline now includes one Phase 2-ready compound, one Phase 1-ready compound, one pre-IND compound, and three preclinical compounds.

While the financial terms of the transaction were not announced, Niiki Pharma’s co-founder, Hooshmand Sheshbaradaran, PhD, has joined Intezyne’s executive team as its chief development officer. Dr. Sheshbaradaran, who has held senior-level positions at some of the leading pharmaceutical companies, including Roche and Pharmacia (acquired by Pfizer), will also serve as a member of Intezyne’s Board of Directors. John S. McBride, a Niiki Pharma board member, also joined the Intezyne Board of Directors. Mr. McBride brings broad global senior management experience from several oncology-focused pharmaceutical companies.

The complex acquisition involved highly creative approaches in a number of areas, including bridging what initially was a material valuation gap by developing a novel earnout plan contingent on the success of Niiki Pharma drugs at key milestones in the clinical phases of approval, and engaging in intense, time-sensitive negotiations with Niiki Pharma creditors between the signing and the closing of the transaction.