Canadian companies Deprenyl Research Ltd. and NovopharmLtd. announced Wednesday that they have formed a strategicalliance to market each other's products.
Also, Novopharm is taking an equity position in Deprenyl andwill have a member on its board of directors. Novopharm willpurchase 1.18 million shares of Deprenyl stock(NASDAQ:DEPLF) for $2.27 million (C$3 million), payable onclosing. In addition, Novopharm will be granted 1.18 millionwarrants, each exercisable for up to four years at $2.05,escalating by 10 percent in each of years three and four.
In return, Novopharm will market and sell a generic version ofDeprenyl's drug Eldepryl, an adjunct therapy for Parkinson'sdisease, as well as two of Deprenyl's original neurologicproducts -- one for treating multiple sclerosis and another forbrain and spinal cord injury. In addition, Deprenyl will marketa dermatology drug for Novopharm. All marketingarrangements are for Canada.
The transaction has been approved by the Deprenyl board andis scheduled to close Friday.
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