RTP-based Tranzyme, a privately held drug discovery and development company, has agreed to merge with
Canada-based Neokimia, a drug discovery company. The new company will combine Tranzyme's proprietary
functional biology with Neokimia's novel chemistry platform. In addition, the new company will have
a portfolio of drug candidates in late-stage lead optimization and anticipates having two compounds
in clinical development in 2005. Tranzyme will maintain its existing facility in RTP as the focal point
for its functional biology program, and will continue its drug discovery operations at the chemistry
facility in Sherbrooke, Québec. Dr. Vipin K. Garg will become president and CEO of the combined
companies.
In connection with the merger, the combined company also announced that it has received $6 million
in convertible debt. Investors participating in the financing are Pacific Rim Ventures of Tokyo, Japan;
BDC Venture Capital (Business Development Bank of Canada) and Desjardins Venture Capital of Montreal,
Canada; Medtech Partners Inc. of Ottawa, Canada (MDS Capital of Toronto provides management services
to Canadian Medical Discoveries Fund, which has a substantial interest in Medtech Partners); Research
Triangle Ventures of North Carolina; and S.C.O.U.T. Healthcare Fund and Redmont Venture Partners of
Birmingham, Alabama. The company will use the funding for optimization and preclinical development
of its lead product candidates in gastrointestinal disorders and metabolic diseases.
Tranzyme is a CED member.