Corautus Genetics and VIA Pharmaceuticals Announce Merger Agreement
Focus is on Compounds that Target Inflammation in the Blood Vessel Wall
The combined company's lead product candidate will be VIA-2291, a small- molecule drug that targets inflammation in the blood vessel wall, believed to be a key disease process in atherosclerosis. VIA filed an Investigational New Drug (IND) application with the U.S. Food and Drug Administration (FDA) in the first quarter of 2006 and is currently conducting two Phase II clinical trials of VIA-2291 treating vascular inflammation in patients undergoing Carotid Endarterectomy and patients at risk for recurrent cardiovascular events following Acute Coronary Syndrome.
The merger agreement has been approved by the Boards of Directors of Corautus and VIA. Under the terms of the Agreement, Corautus will issue, and VIA stockholders will receive, shares of Corautus common stock in exchange for their shares of VIA stock. It is expected that VIA stockholders will own approximately 76.4% and existing Corautus stockholders will own approximately 23.6% of the combined company on a pro forma, fully-diluted basis based on the delivery of $12 million of net cash at closing (the actual percentages to be determined based on Corautus's net cash at closing).
Following the closing of the transaction, Lawrence Cohen, Ph.D., Chief Executive Officer and President of VIA will become Chief Executive Officer and President of the combined company. James G. Stewart, Senior Vice President, Chief Financial Officer of VIA will become the combined company's Chief Financial Officer. Oye Olukotun, MD, MPH, FACC, Chief Medical Officer of VIA will become Chief Medical Officer of the combined company. The combined company's board of directors is expected to consist of seven directors, consisting of three current directors of VIA, one current director of Corautus and three directors to be named by VIA prior to closing the merger.
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