Antibe Therapeutics Announces Strategic Sale of Citagenix Subsidiary

By: Antibe Therapeutics Inc. via Business Wire

May 02, 2022 at 07:00 AM EDT

- $6.5 million all-cash transaction, including milestone payments

- Enables exclusive focus on drug pipeline

Antibe Therapeutics Inc. (TSX: ATE, OTCQX: ATBPF), a clinical stage company leveraging its hydrogen sulfide platform to develop next-generation safer therapies that target inflammation, is pleased to announce the signing of a binding agreement to sell its Citagenix Inc. subsidiary to HANSAmed Limited (“HANSAmed”), a leading Canadian full-service distributor of pharmaceuticals and medical devices to dental professionals.

“We are pleased with this result on several fronts,” commented Dan Legault, Antibe’s CEO. “Upon concluding that Citagenix was no longer a fit with our strategy, we began a process of evaluating strategic alternatives to unlock value for our shareholders. With today’s deal, Antibe will become a pure-play drug developer with a sharpened focus on advancing our pipeline of novel anti-inflammatory therapies. As an all-cash transaction, it provides non-dilutive funds for those programs, and fortifies our already strong balance sheet. We’re also delighted to have found the perfect home for Citagenix while enabling HANSAmed to solidify their market leadership.”

The $6.5 million transaction involves a guaranteed $3.5 million, divided into four equal payments over three years, the first of which will be received at closing. The remaining $3 million is subject to Citagenix achieving sales milestones over the three-year period following closing.

The transaction will close no later than 180 days following the signing of this binding agreement. Under the terms of the agreement, Antibe will also receive a $250,000 deposit from HANSAmed to be held in escrow and released at closing.

About Antibe Therapeutics Inc.

Antibe is a clinical stage biotechnology company leveraging its proprietary hydrogen sulfide platform to develop next-generation safer therapies that target inflammation arising from a wide range of medical conditions. The company’s current pipeline includes assets that seek to overcome the gastrointestinal (“GI”) ulcers and bleeding associated with nonsteroidal anti-inflammatory drugs (“NSAIDs”). Antibe’s lead drug, otenaproxesul, is in clinical development as a safer alternative to opioids and today’s NSAIDs for post-operative pain. Antibe’s second pipeline drug, ATB-352, is being developed for a specialized acute pain indication. The company’s anticipated next target is inflammatory bowel disease (“IBD”), a condition long in need of safer, more effective therapies. Learn more at antibethera.com.

Forward Looking Information

This news release includes certain forward-looking statements under applicable securities laws, which may include, but are not limited to, Antibe’s drug development activities, including the timing, duration and completion of certain of Antibe’s clinical trial programs and studies and the anticipated timing for seeking market approval for certain of Antibe’s drugs and therapies for certain additional indications, and to the timing of and the consideration to be received from the proposed sale of Citagenix. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions “will”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “propose” and similar wording. Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in this news release. Factors that could cause actual results to differ materially from those anticipated in this news release include, but are not limited to, Antibe's inability to timely execute on its business strategy and timely and successfully compete its clinical trials and studies, Antibe’s inability to obtain the necessary regulatory approvals related to its activities, risks associated with drug and medical device development generally, and, in respect of the proposed Citagenix sale, the risk that conditions precedent to the transaction being completed will not be fulfilled within the allotted timeframe, or at all, and risks that Citagenix will not achieve the milestones required for Antibe to receive full payment, and those risk factors set forth in Antibe’s public filings made in Canada and available on www.sedar.com. Antibe assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those reflected in the forward-looking statements except as required by applicable law.