Genica Pharmaceuticals to Merge with Athena Neurosciences Inc.

Strategic Insights -

Genica Pharmaceuticals Corp., a closely held biotechnology company specializing in developing diagnostics for neurological diseases and disorders, is merging with Athena Neurosciences Inc., a research-based pharmaceutical company developing therapeutic and diagnostic products for neurological diseases and disorders. The acquisition will result in Genica stockholders receiving up to 3,450,000 shares of Athena common stock. Genica will continue to operate as a wholly owned subsidiary of Athena Neurosciences Inc. and will retain its Massachusetts location.

Key Takeaways:

  • The merger is subject to approval by Genica stockholders and customary closing conditions, with the transaction expected to be finalized before the end of January 1995.
  • Genica will receive up to 3,450,000 shares of Athena common stock in the merger.
  • Jack Davis, Genica's current chairman, will become a member of Athena Neurosciences Inc.'s board of directors upon closing of the acquisition.
  • Robert E. Flaherty will continue as Genica's president and chief executive officer, reporting to John Groom, president and chief executive officer of Athena Neurosciences Inc.
  • Genica's diagnostic presence in the neurology community will be augmented by Athena's therapeutic neuropharmaceutical capabilities, enabling the two companies to offer neurologists a range of diagnostic services and therapeutic products.
  • The goals of the two companies are complementary, with Athena focused on developing products to diagnose and treat Alzheimer's disease, and Genica working towards bringing to market the world's first definitive diagnostic test for Alzheimer's disease.

Statistics:

  • Genica will receive up to 3,450,000 shares of Athena common stock in the merger.
  • The merger is expected to be finalized before the end of January 1995.
  • Athena plans to register 2,000,000 shares of these shares with the SEC within six months of the expected closing date (July 1995) and the remaining shares in April 1996.
  • Genica has commercialized several technology breakthroughs in genetics and biology from leading U.S. universities and medical institutions over the past five years.

Sources:

  • Business Wire
  • Science, Nov. 11, 1994
  • Harvard University