Citius agrees to purchase LMB

Citius Pharmaceuticals announced this week that it has agreed to buy all outstanding shares of Leonard Meron Biosciences (LMB).

The letter of intent, which is non-binding, gives Citius control over LMB’s lead drug candidate, Mino-Lok.

Mino-Lok, an antibiotic lock solution, was designed for the treatment of patients who have catheter-related bloodstream infections (CRBSIs). Mino-Lok is a novel solution that is protected under patent and contains minocycline, edetate (disodium EDTA) and ethyl alcohol, all of which contribute to the breaking down of bacterial biofilms, eliminate bacteria, prevent clotting of the blood and protect the indwelling catheter. The drug is entering Phase 3 trials after successful Phase 2 trials conducted by MD Anderson Cancer Center in Houston, Texas.

Before the sale is final, the agreement could still undergo due diligence, definitive merger documentation and the closing of financial and other formalities. According to the agreement, Citius will exchange shares of its own stock in order to gain LMB’s shares. When the transaction is finalized, prior LMB stockholders will maintain 49 percent of Citius’s common stock. None of the preferred shares or notes that are able to be converted into common stock will be outstanding in the new company.