On October 22, 2019, Copenhagen-based Zealand Pharma A/S ("Zealand") (NASDAQ: ZEAL) (CVR-no. 20 04 50 78) announced its cross-border acquisition of Toronto-based Encycle Therapeutics, Inc. ("Encycle").
Zealand is a biotechnology company focused on the discovery and development of innovative peptide-based medicines. Encycle is a private biotechnology company exploiting a unique platform technology that enables the rapid synthesis of macrocyclic peptides exhibiting enhanced drug-like properties.
The acquisition is centered on a pre-clinical lead asset that complements Zealand's focus on developing next-generation peptide therapeutics for gastrointestinal diseases. Zealand will also gain access to Encycle's screening library of approximately 5,000 unique peptide macrocycles that could provide additional targets for research using Zealand's expertise in peptide development.
Under the terms of the agreement, Zealand will acquire all outstanding shares in Encycle and all its intellectual property, including all rights to develop and commercialize the lead asset. The total future consideration for the acquisition could potentially reach US$80 million in one-time contingent value rights. There is also a potential mid-single digit royalty on global net sales from the lead asset.
Gowling WLG was counsel to Zealand in connection with this acquisition with a team that was led by Lorne Segal, and that included Daniel Scott, Shaela Rae and Jeffrey Gottzmann (corporate/M&A) and Anita Nador and Jasleen Chahal (IP).
Read the original article on GowlingWLG.com
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