Receptagen Ltd. announced late Tuesday that it has completedits acquisition of Ryan Pharmaceuticals Inc., making Ryan awholly owned subsidiary of Receptagen.
Ryan of Bellevue, Wash., brings to Receptagen the exclusive U.S.patent rights to Coenzyme Q10, a potential immune stimulantthat the company hopes to develop as an AIDS treatment.Receptagen of Vancouver, British Columbia, acquired privatelyheld Ryan for 750,000 shares of stock and agreed to pay thecompany a 5 percent royalty on any future sales of CoenzymeQ10.
In addition, the company made a $15,000 payment to Ryanshareholders and will pay shareholders up to $200,000 forexpenses incurred in connection with the patent.
According to Receptagen (ASE:RCG), Coenzyme Q10, which isapproved in Japan and Europe as a treatment for congestiveheart failure, also has shown some clinical potential as an AIDStreatment. The company said early Phase I clinical data fromthe University of Texas showed that Coenzyme Q10 was able toimprove immune function in AIDS patients and alleviatedobjective and subjective disease symptoms. Receptagen willassume responsibility for clinical development of an AIDSindication for Coenzyme Q10 under the acquisition agreement.
To finance the development of Coenzyme Q10 and Receptagen'sgrowth-blocker technology, the company recently completed aprivate placement of C$10 million (U.S.$7.6 million) in specialwarrants with Equity Capital Group, a Toronto-based division ofCanaccord Capital Corp. -- Karl Thiel
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