Kalytera enters into binding letter of intent to acquire Talent Biotechs and its Phase 2 clinical-stage Graft versus Host Disease program.
Kalytera Therapeutics, Inc. has entered into a binding letter of intent (LOI) to acquire all of the issued and outstanding securities of Talent Biotechs Ltd., a privately held, Israeli-based developer of proprietary cannabidiol (CBD) therapeutics.
Under the terms of the LOI, Kalytera has made a non-refundable payment of USD$1,000,000 to Talent. The acquisition is subject to final due diligence by Kalytera, the negotiation and execution of a definitive agreement, and other customary closing conditions. The acquisition is expected to close on or before February 15, 2017.
Talent is advancing a Phase 2 clinical program investigating the use of CBD to prevent and treat Graft versus Host Disease (GvHD), described below. GvHD is an orphan condition that can arise following stem cell or bone marrow transplants. GvHD occurs when the transplanted cells attack the patient’s organs, including the liver, lungs, heart, kidneys, skin, and nervous system. GvHD is associated with acute and chronic illness and infections, disability, reduced quality of life, and death.
In May 2015, Moshe Yeshurun, M.D., who also serves as the Head of the Bone Marrow Transplantation Department at the Rabin Medical Center in Israel and the Chief Medical Officer of Talent, published results from a Phase 2a clinical study investigating the use of CBD for the prevention of GvHD, with promising initial results.1 Results show, that when administering CBD, there is a significant decrease in the incidence of acute and chronic GvHD following transplantation as compared to historical control patients. Talent is conducting several additional pilot studies in the treatment of GvHD and has obtained four orphan drug designations (ODD) for the prevention and treatment of GvHD in the U.S. and Europe.
The license for this patent was obtained from Mor Research Applications Ltd., the technology transfer company of Clalit Health Services, the largest HMO (Health Maintenance Organization) in Israel.
“We are thrilled to announce the signing of this LOI, which brings us closer to acquiring a late-stage program in GvHD with strong proof-of-concept,” said David Stefansky, Co-Founder of Kalytera and Chairman of the Board of Directors. “There are currently few options to prevent or treat GvHD. We feel incredibly fortunate to be working towards the advancement of this important program.”
“Multiple studies have demonstrated that CBD possesses remarkable therapeutic potential across a broad range of diseases and disorders,” said Andrew Salzman, M.D., Kalytera Chief Executive Officer. “The proposed acquisition of Talent and its late-stage GvHD program significantly advances Kalytera’s mission of becoming a global leader in CBD pharmaceuticals. We are encouraged by Talent’s GvHD data and we are hopeful that Kalytera will be able to rapidly advance the program into placebo-controlled, double blind, randomized studies.”