Recipharm has announced that it has made an equity investment in Synthonics Inc and purchased $2.0 million of preferred stock in the company.
A further $2.0 million of preferred stock will be purchased upon Synthonics’ achievement of certain milestones, which could be expected during 2016. In addition, Synthonics and Recipharm have entered into a Joint Development Agreement under which Synthonics gains access to Recipharm’s expertise in drug development, marketing and manufacturing in exchange for a royalty payment on certain of Synthonics’ compounds.
Synthonics has developed a unique drug delivery technology for metal coordination of pharmaceutical APIs. In connection with its investment, Recipharm’s Carl-Johan Spak has joined Synthonics’ board of directors.
Ken Slepicka, CEO of Synthonics, said: “Synthonics is delighted to extend the partnership with Recipharm to help advance promising molecules to market. We are very impressed with Recipharm’s formulation and development teams and expect this agreement and financial support to help us further advance several of our current projects to commercialization.
Carl-Johan Spak, Executive Vice President, Technology and Development, commented: “This transaction expands our footprint within the US and builds upon our existing Joint Marketing Agreement with Synthonics. In addition, it gives us an opportunity to share in the upside of Synthonics’ chemistry, which we believe offers an elegant and cost-effective means to create patentable drugs that address difficult absorption and delivery issues. We believe that this collaboration will enhance our ability to serve our customers with exciting drug delivery solutions.”