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LONDON (Alliance News) - Computational biology systems company Physiomics PLC on Thursday said it has signed a heads of terms agreement to acquire BioMoti Ltd, as it said its chief executive will step down and its interim pretax loss narrowed.
Physiomics said it has signed a non-binding agreement to buy BioMoti, which makes the Oncojan technology. Oncojan creates nanoparticles which package cancer drugs into efficient sustained release delivery vehicles that can then be coated with tumour targeting antigens, Physiomics said.
The acquisition is conditional upon a number of items, including due diligence and Physiomics completing a successful fundraising. Physiomics didn't say how much it is paying for BioMoti, but said it is seeking to raise GBP4.0 million through a share placing, though no details on pricing were provided.
Physiomics has a six-month exclusivity on the acquisition and intends to complete the deal by August.
Physiomics said the move would mark a shift in strategy to a focus on progressing its Virtual Tumour service business and on progressing BioMoti's lead product to phase 2 efficacy trials.
The deal came as Physiomics said Mark Chadwick will step down as its chief executive by the end of April. He will remain a non-executive director of the company and will continue to handle CEO duties until a replacement is appointed.
Physiomics said it intends to hire an experienced pharmaceutical industry executive and said its plans to identify a successor to Chadwick are well advanced.
Also on Thursday, the company said its pretax loss for the financial half year to the end of December was GBP147,000, compared to GBP240,000 a year earlier, as revenue grew to GBP175,810 from GBP131,306.
Physiomics said it signed up its fourth large pharmaceutical company client in the half and further extended an existing deal with another.
Physiomics shares were down 25% to 0.245 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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