Auxilium Pharmaceuticals announced it has entered into a definitive agreement to merge with QLT to help drive shareholder value and increase research and development.
The companies also plan to continue pursuing a potential partnering agreement for QLT’s late-stage retinoid program, which is nearing phase 3 development, according to a press release from Auxilium.
Under the agreement, a wholly-owned subsidiary of QLT will be merged with and into Auxilium. QLT will remain incorporated in British Columbia, Canada, but will change its name to “New Auxilium.”
When the merger is complete, Auxilium shareholders will own approximately 76% of the combined entity on a fully diluted basis and current QLT shareholders will own approximately 24%, subject to certain adjustments, according to the press release.
The newly combined organization will be led by Auxilium’s current leadership team in Chesterbrook, Pa. Auxilium’s current directors are expected to join the merged board, along with two current QLT directors.
Shares of the combined company are expected to be traded on NASDAQ, and QLT is expected to be delisted from the Toronto Stock Exchange, according to the release.