Alliqua BioMedical to acquire Adynxx, forming new clinical-stage pharmaceutical leader

Pennsylvania-based Alliqua BioMedical has announced a significant merger with San Francisco’s Adynxx, aiming to establish a clinical-stage pharmaceutical entity dedicated to non-opioid pain management therapies. This strategic move promises to revolutionize pain treatment by developing disease-modifying solutions.

Under the terms of the merger, Adynxx stockholders will emerge as the primary owners of Alliqua’s outstanding common stock on a fully-diluted basis. Financial specifics of the deal have not been disclosed.

Alliqua’s Strategic Move

Dave Johnson, CEO of Alliqua BioMedical, expressed enthusiasm about the merger, stating, “We are excited about creating multiple ways for our shareholders to maximize value with Alliqua. First, as announced in May, we intend to make a special cash dividend to our stockholders before the merger. Second, following an extensive review of strategic alternatives, Alliqua’s Board of Directors has determined that the signing of our definitive agreement with Adynxx will allow our stockholders the opportunity to enjoy value appreciation in their equity holdings.”

Alliqua BioMedical, known for its advanced hydrogel technology, specializes in electron-beam cross-linked sheet gels used across various sectors, including medical devices and cosmeceuticals. The company operates a 16,000 square foot GMP manufacturing facility in Langhorne, Pennsylvania, focusing on the development and custom manufacturing of hydrogels.

Adynxx’s Innovative Approach

Adynxx, in contrast, is developing a transformative technology platform to address pain at its molecular origins. The biopharma company’s leading candidate, Brivoligide, is being engineered to mitigate postoperative pain with a single administration during surgery. Brivoligide works by inhibiting EGR1 protein activity in pain-sensitive neurons, thereby altering pain response pathways to reduce post-surgical discomfort.

Rick Orr, CEO of Adynxx, highlighted the importance of this merger in the context of the ongoing opioid crisis in the United States. He stated, “With the ongoing opioid crisis in the United States, there is a critical need for novel and effective non-opioid therapeutics to treat pain and reduce opioid usage. Following this transaction, our goal is to accelerate the development of Brivoligide to benefit patients who would otherwise experience greater pain and higher levels of opioid usage following surgery. We also plan to build a robust pipeline of novel therapeutics for pain and inflammation through development of our earlier-stage internal programs, our ongoing discovery collaboration leveraging artificial intelligence, and additional in-licensing activities.”

Next Steps and Future Prospects

The merger is subject to approval from the shareholders of both companies. Once finalized, Alliqua will be rebranded as Adynxx and will operate from its new headquarters in San Francisco, guided by Adynxx’s existing management team.