Halifax biotech company developing safe, cutting-edge products to ease chronic pain, inflammation
July 11, 2019 – Halifax, NS – Atlantic Canada Opportunities Agency
Innovative new treatments for pain management improve the daily lives of Canadians. Panag Pharma Inc. is developing a line of plant-based remedies to fight chronic pain and inflammation, helping people enjoy a better quality of life, and growing Atlantic Canada’s life sciences sector.
The Halifax biotechnology company is creating a family of both over-the-counter and prescription cannabinoid-based products that provide safe, effective, non-addictive pain management. The treatments act directly on the pain receptors in the body and are used for wound healing, treating irritated skin and relieving cold sores, among other applications. Unique in the world, these natural medications enable the company to create highly skilled jobs and position it well for future growth.
Today, Andy Fillmore, Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism and Member of Parliament for Halifax, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), announced support for Panag Pharma Inc. as it develops and commercializes its innovative products.
The Government of Canada is making smart investments that will create good, highly skilled jobs in our country. It is helping small and medium-sized businesses to start-up, expand or modernize and supporting not-for-profit industry organizations to fuel business growth. Support for this project is one way the Government of Canada is working to achieve its Atlantic Growth Strategy outcome of long-term economic prosperity in the region.
“Innovation that focuses on the commercialization of research to improve the quality of people’s lives can have far-reaching global impacts. That is why the Government of Canada is committed to projects such as this one that showcase the best of what Atlantic Canada offers, providing quality bio-innovations that attract investment and talent and advance regional economic prosperity.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, and Minister responsible for ACOA
“When a local organization develops groundbreaking solutions to treat problems like chronic pain, it not only improves the daily lives of Canadians, but also bolsters development of the life science sector in the region. The Government of Canada is proud to support local businesses like Panag Pharma that spur economic growth, create highly skilled jobs and make the world a better, and less painful, place.”
– Andy Fillmore, Parliamentary Secretary to the Minister of Canadian Heritage and Multiculturalism and Member of Parliament for Halifax
“We are extremely pleased to have the support of the ACOA. This contribution clearly underlines the confidence the Agency has in our strategic direction to further grow our business and to our commitment to the Province of Nova Scotia and Atlantic Canada. Our management and employees are grateful for the opportunities this financing presents.”
– Chris MacLean, Chief Operating Officer, Panag Pharma Inc
“Today’s announcement reminds me of the expression that it takes a village. With the ingenuity and innovation of our life sciences group Panag, the marketing expertise of Tetra Natural Health, the licensing skills of Tetra Bio-Pharma, assistance with facilities from Dalhousie University and the generosity and confidence of the Atlantic Canada Opportunities Agency, we are able to showcase what collaboration can accomplish and it is something we should all be justifiably proud of.”
– Dr. Bill Cheliak, Chairman of the Board of Directors of Tetra Bio-Pharma Inc.
Panag Pharma is a wholly owned subsidiary of Ontario’s Tetra Bio-Pharma. The Panag Pharma team of PhD scientists and medical doctors are leading researchers and clinicians in the area of pain treatment and management. They bring a combined experience of more than 100 years in research and clinical care of people dealing with chronic pain and inflammatory conditions.
Panag Pharma Inc. plans to produce AWAYE™, a topical over-the-counter medication for the temporary relief of aches and pains of muscles and joints associated with one or more of strains/sprains involving muscles, tendons, and/or ligaments, arthritis, simple backache and/or lumbago. The product, which is manufactured in New Brunswick, is already Health Canada approved and has a Natural Product Number. It is currently undergoing clinical trials and will be available through online distribution, over the counter in pharmacies, and by prescription. Other treatments for cold sores, hemorrhoids, interstitial cystitis and corneal ulcers are in development.
The Government of Canada is providing a repayable contribution of $500,000 to Panag Pharma Inc. through ACOA’s Business Development Program.
The BDP primarily assists Atlantic Canadian entrepreneurs who want to start a business, increase productivity or improve operations. Investments under the BDP address any gap that may arise if an application does not fit within ACOA’s Regional Economic Growth through Innovation (REGI) program.
The Business Development Program continues to build on the objectives of Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class and those working hard to join it.
Director, Communications and Outreach
Atlantic Canada Opportunities Agency
902-426-9417 / 902-830-3839 (cell)
Chief Operating Officer
Panag Pharma Inc.
Read the original press release here.
The Proposed Transaction is expected to provide Tetra:
- With the most robust Pharmaceutical and Natural Health Products (NHP) pipeline of any Cannabinoid company;
- With more pharmaceutical and natural health products;
- The ability to sell these products worldwide; and
- Access to Panag’s NHP portfolio which is not included in the present in-licensing agreement with Panag.
ORLEANS, Ontario, Nov. 06, 2018 (GLOBE NEWSWIRE) — Tetra Bio-Pharma Inc., (“Tetra” or the “Company“), a leader in cannabinoid-based drug discovery and development (TSX VENTURE: TBP) (OTCQB: TBPMF), today announced it has entered into a non-binding proposal (the “Proposal“) with the shareholders (the “Vendors“) of Panag Pharma Inc. (“Panag“) for the acquisition by Tetra of all of the issued and outstanding shares in the capital of Panag (the “Proposed Transaction“). Panag is a Canadian-based life sciences company focused on the development of novel cannabinoid-based formulations for the treatment of pain and inflammation. Panag has developed innovative and patented formulations for the treatment of ocular diseases and other pain conditions such as general neuropathic pain. Their significant formulation expertise in the wellness market will allow Tetra to expand its commercial operations.
Dr. Guy Chamberland, CEO and CSO of Tetra stated, “We are very pleased to announce this news to our shareholders. We have been working with Panag for over a year and as a combined entity we will have a robust product pipeline of cannabinoid derived drugs for development as prescription or OTC drugs. Tetra is not just acquiring assets and intellectual property, we are joining a group of world-renowned cannabinoid experts that will help take Tetra to the next level as a pharmaceutical company.”
Panag will remain a separate subsidiary owned 100% by Tetra and will provide Tetra with additional discovery and early phase drug development capacity. With this robust product pipeline, Tetra intends to continue to implement its out-licensing program to generate additional revenues via upfront payments, milestone payments, and royalties and actively pursue the clinical development of lead products.
“Panag will bring Tetra Natural Health a unique pipeline of products, thereby strengthening our role as a key player in the cannabinoid wellness market,” said Richard Giguere, CEO of Tetra Natural Health. “We look forward to working with Panag to commercialize these products globally and expect to generate revenues from these products by Q4 2019 following completion of the acquisition.”
According to Dr. Orlando Hung, a co-founder of Panag, “We are very excited to have the opportunity to continue our decades of cannabinoid research work and partner for commercialization with Tetra Bio-Pharma. The timing is perfect as there is an urgent need for non-opioid medications to treat pain and inflammation. We expect the Panag-Tetra Bio-Pharma combined portfolio of cannabinoid products to play a significant role in the management of pain and inflammation. We are particularly pleased to have the support of Tetra Bio-Pharma to advance the development and research of Panag cannabinoid products.”
Pursuant to the Proposal, Tetra would acquire 100% of the issued and outstanding shares of Panag for an aggregate consideration of $12,000,000, on a debt-free basis and subject to customary post-closing adjustments. The purchase price would be payable by Tetra delivering to the Vendors, on the closing date of the Proposed Transaction, (i) $3,000,000 in cash and (ii) $9,000,000 payable in common shares of Tetra. The Proposal also contemplates the payment by Tetra to the Vendors of an aggregate amount of up to $15,000,000 in cash in milestone payments upon the achievement of operational targets associated with marketing approvals and commercialization of both human and veterinary drug products by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA). The milestone payments would be accelerated in the event of a bankruptcy, insolvency, change of control or sale of all of the assets of Tetra.
Two of the Vendors, Bill Cheliak and Gregory Drohan, are non-arm’s length parties to Tetra within the meaning of the rules of the TSX Venture Exchange. Mr. Cheliak is the Chairman of the Board of Directors of the Company and Mr. Drohan is a Director of the Company. The Proposed Transaction will not result in the issuance of securities to non-arm’s length parties as a group as payment of the purchase price exceeding 10% of the number of outstanding shares of the Company on a non-diluted basis.
The Company expects that the Proposed Transaction will be completed by the end of the 2018 calendar year. 100% of the shareholders of Panag have signed the term sheet. Completion of the Proposed Transaction remains subject to a number of conditions, including the completion of a satisfactory due diligence investigation by Tetra, the negotiation of a definitive purchase agreement, the approval by Panag’s shareholders in accordance with the shareholders’ agreement of Panag, the receipt of all required regulatory approvals, including that of the TSX Venture Exchange and such other closing conditions as are customary in transactions of this nature. There can be no assurance that such conditions will be satisfied and that the Proposed Transaction will be completed as described or at all.
About Tetra Bio-Pharma:
Tetra Bio-Pharma (TSX-V: TBP) (OTCQB: TBPMF) is a biopharmaceutical leader in cannabinoid-based drug discovery and development with a Health Canada approved, and FDA reviewed, clinical program aimed at bringing novel prescription drugs and treatments to patients and their healthcare providers. The Company has several subsidiaries engaged in the development of an advanced and growing pipeline of Bio Pharmaceuticals, Natural Health and Veterinary Products containing cannabis and other medicinal plant-based elements. With patients at the core of what we do, Tetra Bio-Pharma is focused on providing rigorous scientific validation and safety data required for inclusion into the existing bio pharma industry by regulators, physicians and insurance companies.
For more information visit: www.tetrabiopharma.com
About Panag Pharma:
Panag Pharma Inc. is a Canadian based bio-tech company focused on the development of novel cannabinoid-based formulations for the treatment of pain and inflammation. Panag believes that pain relief should be safe, non-addictive and above all; effective. The Panag Pharma team of PhD scientists and medical doctors are among the world’s leading researchers and clinicians in pain treatment and management. They bring a combined experience of over 100 years in research and clinical care of people dealing with chronic pain and inflammatory conditions. Panag’s current pipeline of pain relief products include formulations for the topical application to the skin, the eye and other mucous membranes. Recently approved by Health Canada and currently undergoing clinical trials, Panag Pharma’s Topical AOTC provides a new approach to the treatment of chronic pain and inflammation.
Read the original article here.
Halifax-based Panag Pharma, which is making pain-relief products from natural compounds found in cannabis plants, has agreed to be bought for as much as $27 million by Ontario’s Tetra Bio-Pharma.
Based in the Ottawa suburb of Orleans, Tetra is a drug discovery company that specializes in developing treatments based on such compounds – known as cannabinoid-based drug discovery. The company, which is listed on the TSX Venture Exchange, said in a press release that the acquisition will allow Tetra to develop more natural healthcare products and sell them world wide.
The Panag Team – which is led by healthcare professionals Mary Lynch, Melanie Kelly and Orlando Hung – will continue to conduct research into cannabinoid-based treatments for Tetra, and receive extra payments for hitting specific milestones. The buyer said it believes it will gain revenues from Panag’s products by late 2019.