Salarius Pharmaceuticals LLC, a Houston-based developer of clinical-stage cancer treatments, has announced a definitive merger agreement with biotechnology company Flex Pharma Inc. Pillsbury is advising Salarius in the deal, under which the privately held company will merge with a wholly owned subsidiary of Flex Pharma. The proposed transaction will position the combined company, to be renamed Salarius Pharmaceuticals, to realize multiple value streams based on Salarius’ clinical pipeline.
Salarius develops treatments for rare cancers and for cancers that have a high unmet need. The company’s lead compound, Seclidemstat, targets the underlying cause of Ewing sarcoma, a devastating bone cancer affecting children and young adults for which no targeted therapies exist. Salarius recently completed a $6.4 million private placement and is presently dosing patients in its ongoing Phase 1 Ewing sarcoma trial. Salarius also is the recipient of an $18 million grant from the Cancer Prevention & Research Institute of Texas and is well-positioned to fund the current clinical trial through mid-2020.
Upon the transaction’s closing, Flex Pharma stockholders will own approximately 19.9 percent of the combined company and Salarius investors will own approximately 80.1 percent. Salarius’ management team will lead the newly merged entity, the companies said in a joint statement.
The Pillsbury team advising Salarius in this transaction is led by Corporate partner Andrew Strong and includes corporate lawyers Christina Pearson, Barry Burgdorf, Steve Tyndall, Julie Park, Supriya Krishnan, Daniel Garcia, Janessa Ingram and Lana Persaud. Also on the team are Howard Clemons and Justin Krawitz (Executive Compensation & Benefits); Michelle Mehok (Intellectual Property); Nora Burke and Dana Newman (Tax); Bradley Reeves (Litigation); and William Hotze (Insolvency & Restructuring).