CombinatoRx, Neuromed Shareholders Approve Merger
Mon, 12/21/2009 - 4:05am
CAMBRIDGE, Mass. (AP) — Biotech drug developer CombinatoRx Inc. and Neuromed Pharmaceuticals Ltd. said Friday their shareholders approved the companies' proposed merger. The all-stock transaction was announced in July and is expected to close Monday. Under the terms of the deal, CombinatoRx will issue about 36 million new shares of its common stock to Neuromed shareholders in a move that will give each side half of the voting power in the combined company. In July, the companies said final ownership will be determined by the outcome of the Food and Drug Administration review of Neuromed's extended-release opioid painkiller Exalgo. In June, Covidien, which is based in Ireland, bought the rights to Exalgo from Neuromed for an undisclosed amount. The drug is currently under FDA review. CombinatoRx is based in Cambridge, Mass. The company's stock rose a penny to $1.06 in afternoon trading. Neuromed is a privately held company based in Canada.