Kalytera Therapeutics (TSX-V:KALY) completed the acquisition of Talent Biotechs, a privately held company in Israel that develops cannabidiol (CBD)-based therapies.
Talent is currently evaluating the use of CBD to prevent and treat Graft versus Host Disease (GvHD), a life-threatening condition that can occur following stem cell or bone marrow transplantation.
Kalytera will provide a combination of cash, securities, and future contingent payments to Talent. To date, Kalytera has made cash payments to Talent totaling $10-million.
“The results of Talent’s Phase 2 clinical studies are unprecedented, and mark a major milestone in the potential prevention and treatment of this severe and life-threatening disease,” Kalytera CEO Dr. Andrew Salzman, said in a statement.
“We are encouraged by the data and seek to rapidly advance the GvHD program into FDA Phase 2b clinical studies,” he added.
Robert Farrell, COO and CFO of Kalytera, said the acquisition of Talent is a transformational transaction for Kalytera. Talent and its late-stage GvHD program significantly advances Kalytera’s position as an emerging leader in CBD pharmaceuticals, he added. “We expect our work in GvHD to be the first of many programs that seek to investigate and commercialize this important compound.”