15th Apr 2020 11:32
(Alliance News) - Circassia Pharmaceuticals PLC on Wednesday said another shareholder has agreed to vote in favour of the termination a development and commercialisation agreement with AstraZeneca PLC and transfer of drug rights.
Circassia has two businesses: one is an asthma diagnostics and management business selling its NIOX platform, and the other is a COPD business. The latter was formed through its collaboration with Astra, under which Circassia promotes Tudorza and Duaklir - "two inhaled chronic obstructive pulmonary disease treatments" - in the US.
Circassia is now seeking to end this agreement with Astra and instead sell the US commercial rights to the two COPD drugs to Astra in exchange for the settlement of debt. As of Thursday last week, Circassia owed approximately USD149.9 million of loans and interest to Astra.
The proposed sale of Tudorza and Duaklir to Astra is fundamental change of businesses under AIM rule 15, meaning it requires shareholder approval. A general meeting will take place on April 30 to vote on the change. In-person attendance at the meeting is not permitted due to UK lockdown measures. All proxy votes will be included in the general meeting polls.
With its most recent irrevocable undertaking from a shareholder to approve the change of business, Circassia now has irrevocable undertakings amounting to 38% of its share capital.
Shares in Circassia were down 5.5% at 24.72 pence each in London on Wednesday morning. Astra shares were up 1.5% at 7,716.00p each.
By Anna Farley; [email protected]
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