CombinatoRx, Neuromed to merge

CombinatoRx Inc. (NASDAQ:CRXX) and Neuromed Pharmaceuticals (Vancouver, B.C.) agreed to merge in a stock deal. CombinatoRx will issue 36 million new shares to Neuromed, giving shareholders of each company a 50% stake in the newco. Based on CombinatoRx's close of $0.80 on Tuesday, before the deal was announced, the 36 million shares are worth $28.8 million.

The combined company will retain CombinatoRx's name and ticker and will be based in Cambridge, Mass. Neuromed President and CEO Christopher Gallen will retain his titles at the newco and join the board. Alexis Borisy will depart as president and CEO of CombinatoRx. ...