Oxygen Biotherapeutics To Acquire Certain Assets Of Phyxius Pharma

(RTTNews) - Oxygen Biotherapeutics, Inc., (OXBT) a developer of oxygen-carrying therapeutics, announced it has signed a definitive agreement to acquire certain assets of Phyxius Pharma, a privately-held biopharmaceutical company. Oxygen Biotherapeutics will acquire the exclusive rights to develop and commercialize levosimendan in North America, as well as integrating three key Phyxius Pharma executives into the company's management team.

The transaction is valued at approximately $4.8 million in stock, based on Oxygen Biotherapeutics issuing an aggregate of approximately 3.4 million shares of its common stock and securities convertible into common stock to Phyxius Pharma's stockholders in a private placement.

Upon closing of the transaction, Phyxius Pharma Co-Founder and CEO, John Kelley is to become CEO of Oxygen Biotherapeutics. Michael Jebsen, Oxygen Biotherapeutics' current Interim CEO and CFO, will remain serving as the CFO.

Levosimendan is licensed from Finland-based Orion Corporation, a global healthcare company. The drug is currently approved in 53 countries to treat acute decompensated heart failure.

The asset purchase agreement brings to Oxygen Biotherapeutics not only the exclusive rights in North America to develop and commercialize levosimendan for the specific indication of prevention and treatment of low cardiac output syndrome, but also the FDA's approval of Fast Track status for a Phase 3 trial, and the FDA's SPA which represents agreement with the Phase III clinical trial's study protocol.

"Upon closing of this transaction, Oxygen Biotherapeutics will be a company that has a clear path to commercialization with a Phase 3 asset addressing a $600 million market. With Fast Track status and an agreed study protocol under the Special Protocol Assessment, we expect we are one trial away from approval," said Michael Jebsen, Oxygen Biotherapeutics' Interim CEO and CFO.