Seneca Biopharma Inc (NASDAQ:SNCA) entered a pact with Leading BioSciences, Inc (LBS) on December 17, 2020. As per the terms of the pact, a subsidiary of Seneca will merge with LBS to create a new company called Palisade Bio Inc. The new company will trade on NASDAQ under the ticker PALI. It is an all-stock deal. Thomas M. Hallam will act as CEO for Palisade. The headquarters of Palisade will be located in Carlsbad, California. Its board will comprise eight members from LBS and three from Seneca.
Seneca appointed Solebury Trout LLC as a financial advisor. The company also recruited Silvestre Law Group, P.C as a legal counsel for the deal.
Palisade focuses on advancing LB1148
Palisade will concentrate on advancing LB1148, a lead pipeline asset of LBS, for evaluating its potential through a clinical trial to restore normal GI function after major surgery. It will also help to minimize postoperative complications like abdominal adhesions.
Altium Capital invests $22.5 million
Following the merger and on satisfying certain conditions, Altium Capital will invest $22.5 million in Palisade, which will use the funds for advancing clinical programs such as LB1148.
The patent-protected, phase 3 ready oral formulation – LB1148 is developed to neutralize potent digestive proteases, which are released during surgery from the gut. LB1148 acts by inhibiting digestive proteases and safeguards the GI tissues from getting damaged. It also reduces hospital stay post-surgery and restores GI function quickly.
CEO of LBS, Tom M. Hallam said it is a transformational phase for LBS. He further said the combined company will play a vital role in advancing its lead drug candidate – LB1148 in the final clinical trial to get the nod of FDA. The company is excited to commence the pivotal trial of LB1148 to prove its efficacy to reduce the time for restoring GI function to a normal position after open-heart surgery.
EC of Seneca, Kenneth C Carter, said the merger with LBS offers rich dividends to the stakeholders of LBS in the long term. The leadership at LBS, support from the leading clinicians, and differentiated pipeline of assets will provide a solid foundation for the success of all stakeholders in the future.