Harmony will fund the transaction from its existing cash on hand.
Harmony Biosciences Holdings Inc. (Nasdaq: HRMY) is buying Zynerba Pharmaceuticals Inc. (Nasdaq: ZYNE) in an all-cash deal valued at $60 million. Harmony will fund the transaction from its existing cash on hand. The deal is expected to close in the fourth quarter.
Zynerba stock popped almost 300% on the news to lately sell at $1.32.
As of June 30, Harmony had cash, cash equivalents, and investment securities of $429.6 million. Zynerba’s existing cash and cash equivalent balance was approximately $36 million as of the same date.
Harmony specializes in developing and delivering treatments for rare neurological diseases that others often overlook. Zynerba creates cannabinoid therapies for orphan neuropsychiatric disorders, including Fragile X syndrome.
“This is an important step in Harmony’s strategy to build a diversified portfolio of innovative assets to address unmet medical needs and drive our long-term growth. This acquisition affords us the opportunity to advance the development and delivery of a potentially transformative treatment for the symptoms of Fragile X syndrome and other rare neuropsychiatric disorders,” said Jeffrey M. Dayno, president and CEO at Harmony Biosciences.
“In addition to the strength of our core business in narcolepsy and our current life cycle management programs, led by idiopathic hypersomnia, we are excited to continue to diversify our portfolio beyond sleep/wake by adding Zynerba’s clinical development programs to our pipeline,” Dayno added.
Zynerba‘s main product is Zygel, a pharmaceutically manufactured cannabidiol that delivered transdermally through the skin and into the circulatory system. Zygel is manufactured through a synthetic process in a cGMP facility and is not extracted from the cannabis plant.
“Harmony’s development and commercial expertise, technologies, people and focus on rare neurological diseases are an excellent strategic fit with Zynerba,” said Armando Anido, chairman and CEO of Zynerba. “With Harmony’s scale, resources, and proven commercial excellence, they are well positioned to potentially bring to market the first pharmaceutical product indicated for the treatment of behavioral symptoms of Fragile X syndrome and to maximize the value of Zygel.”
Zynerba said in a statement that cannabidiol, the active ingredient in Zygel, has been granted orphan drug designation by the United States Food and Drug Administration and the European Medicines Agency for the treatment of FXS and for 22q. Additionally, Zygel has received FDA Fast Track designation for the treatment of behavioral symptoms in patients with FXS.
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