Apollo Endosurgery, a US-based medical device manufacturer backed by pharmaceutical firm Novo, yesterday agreed to acquire antibody developer Lpath in an all-stock transaction.
Lpath will be taken private through the deal, having floated on Nasdaq in 2012. Apollo is set to own 95.8% of the combined entity, which will seek a flotation on Nasdaq under a new symbol.
Apollo’s existing shareholders, which include Novo, investment firm CPMG and VC firms PTV Healthcare Capital, Remeditex Ventures and BioHealth Partners, will provide $29m in funding in Apollo’s stake upon closure of the deal, expected to take place in the final quarter of this year.
Apollo Endosurgery is developing minimally invasive endoscopic surgical products to be used in bariatric and gastrointestinal procedures.
The company was co-founded in 2005 by Apollo Group, which is a collaboration of researchers at Mayo Clinic, Johns Hopkins University, Medical University of South Carolina, University of Texas Medical Branch and Chinese University of Hong Kong.
Apollo Endosurgery has secured more than $256m in equity and debt, according to press releases and regulatory filings. Novo supported a $47.6m funding round in 2012 alongside CPMG, Remeditex, PTV and HIG BioVenture.
Lpath is working on antibody treatments for a range of conditions, such as wet age-related macular degeneration, an eye disease that leads to blurry vision or loss of sight in the centre of a patient’s field of vision. Its directors and executive officers will resign once the merger is complete.
Todd Newton, CEO of Apollo, said: “Executing this transaction with Lpath is an expedient way to introduce our company to the public market. With the additional equity support we will receive from Apollo’s major investors as part of this transaction, we will have the resources to meet our near-term business needs.”