DelMar expands late-stage oncology pipeline with acquisition

San Diego, USA-based biotech DelMar Pharmaceuticals’ (Nasdaq: DMPI) shot up 20% pre-market today, as it revealed the signing of a definitive merger agreement with Adgero Biopharmaceuticals, a privately held biopharmaceutical company focused on the development of its late-stage photodynamic therapy platform for the treatment of serious cutaneous oncology indications.

In an all-equity transaction, Adgero stockholders will receive shares of DelMar common stock for shares of Adgero common stock. The stock was still up more than 7% at $1.33 by late morning.

Upon completion of the merger, which is expected to close in the third-quarter of this year, current DelMar and Adgero stockholders will own 50.5% and 49.5% of the total voting power of the combined company, respectively, exclusive of securities to be issued in a financing to occur prior to the merger closing, as well as compensation payable in connection with the merger and the financing. Subject to stockholder approval of both companies and other closing conditions, the transaction is expected to close in the third quarter of 2020, at which time DelMar is expected to change its name to Kintara Therapeutics, and trade on Nasdaq under the new ticker symbol KTRA.