Rexahn Pharmaceuticals Inc. (NASDAQ:REXN) has announced that it has entered a definitive merger agreement with privately-held ophthalmic biopharmaceutical firm, Ocuphire Pharma Inc.
Rexahn to merge with Ocuphire in an all-stock deal
Under the agreement, Ocuphire will merge with Rexahn’s wholly-owned subsidiary in an all-stock deal. The companies expect to finalize the closing of the transaction in the second half of this year, after which there will be a name change for the merged company to Ocuphire Pharma. The combined company will also be trading on the Nasdaq capital market under the ticker “OCUP.” The new company will focus on the development and advancement of its ophthalmic drug pipeline.
Some accredited and institutional healthcare investors and Ocuphire executives and directors have already committed a $21.5 million investment in the company. This will be through a private placement that will be completed immediately before the merger’s finalization, depending on the waiver or satisfaction of customary closing requirements. The investors in the pre-merger financing will receive common shares of Ocuphire before closing, which they can convert to Rexahn common shares after the transaction is closed. Equally, after finalizing the transaction, Rexahan will issue the investors with warrants to acquire its common shares.
Ocuphire has robust backing to advance the development of its pipeline
Douglas Swirsky, the CEO and President of Rexahn stated that after a series of comprehensive strategic alternatives review, the company decided to merge with Ocuphire. This is because there saw a merger as a good opportunity that will offer shareholder value going forward. Swirsky added that picking Ocuphire will enable shareholders to be part of a dynamic enterprise that has a strong pipeline. This is because it is backed with huge commitment from investors to continue advancing the development of its multiple ophthalmic drug candidates.
Ocuphire has a pipeline of a drug candidate that has shown clinical activity targeting value markets. Nyxol Eye Drops, a once per day phentolamine mesylate eye drop formulation, reduces pupil diameter and enhance visual acuity.