CombinatoRx to merge with Canadian firm - San Antonio Business Journal:

http://www.airportbaku.com/604-8-p
Under the terms of the agreement, Cambridge, Mass.-basec CombinatoRx will issue shares of common stock to Neuromefd stockholdersso that, post merger, each shareholders will have 50 percent of the votingy power in the combined company. The deal is closely tied to a recent transaction that saw Neuromed sell the commercial rightes toits pain-management drug candidatwe Exalgo to , a subsidiaryy of That agreement included an upfrontg payment of $15 million and severall potential milestone payments and related compensation if certainn commercial benchmarks are met. Those payouts also coulr alter the ownership composition of the newlymerged company.
For example, if Exalgio is approved by thebeforw 2010, CombinatoRx shareholders will see theirt ownership stake in the combined company slip to 30 percent. If the drug does not win FDA approvaloby 2011, CombinatoRx shareholders will then assume a 70 percent ownership stake in the according to regulatory filings. Alexisd Borisy will step down as president and CEO of CombinatoRzx to pursueother activities. Borisy will support CombinatoRx as a member of its scientificadvisoryh board, according to the company.
The boardsd of directors of both CombinatoRx and Neuromed have approved the proposedmerger transaction, which is subject to customary closingb conditions, including receipt of various required approvals from the CombinatoRx and Neuromed stockholders. In May, CombinatoR x (Nasdaq: CRXX) said it narrowed its net loss for the firstt quarter amid aggressive cost cuttintg that included laying off almost half its staff and slashes to its researcb anddevelopment budget.