Forbes, TheraPei Pharmaceuticals Inc. deal

Metabolic company FMI agreed to acquire TheraPei for an undisclosed upfront cash payment and up to 150,000 shares. The shares are valued at $380,000 based on FMI's close of $2.53 on Oct. 24, the day before the deal was announced. FMI also will pay up to $50 million in milestones, plus licensing revenues and/or royalties. FMI plans to pay at least 80% of all future considerations with stock. FMI gets TheraPei's discovery programs in acetyl- CoA carboxylase 2 ( ACC2) inhibition potentially for diabetes and obesity indications, and serine palmitoyltransferase (SPT) inhibition for anti-inflammatory indications, as well as the company's lead preclinical candidate, a peptide that stimulates insulin secretion. John Nestor, founder and majority shareholder of TheraPei, will become FMI's CSO. FMI plans to base its R&D operations out of TheraPei's facilities in San Diego. ...