Panbela Therapeutics Acquires Cancer Prevention Pharmaceuticals For Stock & Milestone Payment

Panbela Therapeutics Inc PBLA has agreed to acquire a privately-held Cancer Prevention Pharmaceuticals Inc (CPP) for a combination of stock and future milestone payments.

• The combined entity will have an expanded pipeline addressing an estimated $5 billion market opportunity for the areas of initial focus: familial adenomatous polyposis, first-line metastatic pancreatic cancer, neoadjuvant pancreatic cancer, colorectal cancer prevention, and ovarian cancer. 
• Under the terms of the agreement and plan of merger, the CPP's shareholders will receive Panbela shares upon closing of the merger. 
• On a pro forma and fully diluted basis, Panbela shareholders will own approximately 59% of the post-merger holding company, and holders of CPP securities will own about 41%.
• CPP stockholders will be eligible to receive contingent payments totaling a maximum of $60 million from milestone and royalty payments associated with the potential approval and commercialization of the lead asset.
• The closing is expected to occur by Q2 of 2022.
• Price Action: PBLA shares are down 6.48% at $2.02 during the market session on the last check Tuesday.