BioCentury
ARTICLE | Company News

Ocera, Tranzyme deal

May 13, 2013 7:00 AM UTC

Tranzyme and Ocera said that Ocera will merge with Tranzyme's Terrapin Acquisition Inc. subsidiary in a stock deal to form a NASDAQ-listed company called Ocera Therapeutics Inc. After the merger, former Ocera shareholders will own 72.6% of the company and Tranzyme shareholders will own 27.4% of the company. The newco will be led by Linda Grais, president and CEO of Ocera, and will be headquartered in San Diego. In conjunction with the merger, Ocera investors committed to a $20 million PIPE financing, which is expected to close after the merger. The merger is slated to close next quarter.

The newco will develop Ocera's ornithine phenylacetate ( OCR-002), which is in Phase II testing for Orphan liver diseases. OCR-002 has Fast Track and Orphan Drug designations in the U.S. to treat hyperammonemia and resultant hepatic encephalopathy. The ammonia scavenger has CE Mark approval in the EU to treat irritable bowel syndrome (IBS). ...