FSD Pharma Completes $17.5m Prismic Deal

Ontario-based medical cannabis producer FSD Pharma has closed a US$17.5 million deal to purchase American firm Prismic Pharmaceuticals Inc.

The agreement sees FSD issue 102.7 million shares at $0.17 apiece and it will also assume just over $3 million of Prismic’s liabilities.

Healthcare industry veterans Zachary Dutton, Danilo Casadei Massari and Peter Moriarty in Worcester, Massachusetts, back in 2011. It is dedicated to addressing the American opioid crisis by developing non-addictive prescription drugs that can treat pain, inflammation, and neurological conditions.

It uses THC and CBD to create these products and its first prescription drug candidate, PP-101, is designed to treat the chronic pain condition fibromyalgia. It is anticipated to begin a Phase 2/3 accelerated clinical development program in 2020.

Dutton will continue to serve as the chief executive at Prismic, reporting to Edward Brennan, Jr., who heads up FSD’s biosciences division.

Moriarty was the chairman at Prismic and he will now chair the newly formed FSD BioPharmaceutical Industry Advisory Board. He believes the combined resources of the two firms will help the enlarged group enjoy significant growth.

Raza Bokhari, who took over as permanent chief executive and co-chairman at FSD last month, will continue to lead the group. Predecessor Rupert Haynes was in the role for just three months before the board axed him in February 2019, and Bokhari held the post on an interim basis until June 3.

A joint venture with Auxly Cannabis Group collapsed earlier this year, sparking a war of words between the two firms. Now FSD is bidding to put a tumultuous period behind it and Bokhari feels the Prismic deal represents a significant milestone for the firm.

“The Prismic acquisition represents strategic depth in the vision and mission of FSD Pharma and signals a paradigm shift in the overall outlook of the company,” he said.

The aim is now to produce synthetic cannabinoid-based medicines for commercial use in the U.S. and Brennan, a former executive at Glaxo Smith Kline and Johnson & Johnson, is tasked with navigating the firm through the FDA approval process.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live.

Leave a Reply

avatar
  Subscribe  
Notify of