Breathing on revenues

Etiologics Ltd. and Argenta Discovery Ltd. say last week's all-stock merger brings together the components of a complete drug discovery engine: Argenta's chemistry and Etiologics' biological focus on respiratory diseases. It also provides a revenue stream from Argenta's contract research work for large pharma that the company can use to get from discovery into the clinic.

Etiologics has a series of models for chronic obstructive pulmonary disease (COPD) and compounds in the research stage, said Stephen Readers, investment manager with MVM, which had invested in both companies. "With the acquisition of Argenta, the company now has the chemistry to develop lead compounds on its own account," he said...