MONTREAL, CANADA and PETAH TIKVA, ISRAEL, August 31, 2015 – Knight Therapeutics Inc. (TSX: GUD) (“Knight”), a leading Canadian specialty pharmaceutical company, and Medison Biotech (1995) Ltd. (“Medison”), Israel’s leading independent specialty pharmaceutical company, announced today a strategic collaboration in which the companies will join forces in their respective missions to bring innovative treatments to patients in Canada, Israel and Romania. The companies will maintain a structure that will scan and evaluate the productive Israeli pharma/biotech/device landscape on a regular basis and will provide them with the required resources necessary to incubate them until licensing or strategic sale. This partnership aligns well with Knight’s strategy to (1) develop a footprint in select international markets such as Israel and (2) build a rich pipeline of innovative products for the Canadian market.
To solidify the partnership, upon the closing of the transaction, each company will become a significant shareholder of the other. Specifically, Knight will hold a 28.3% equity interest in Medison valued at $80 million [US$60 million] in exchange for approximately a 10% equity interest in Knight (10.33 million common shares of Knight to be held by Medison and its controlling shareholder). Up to an additional 660,000 Knight shares could be issued if Medison meets certain financial targets over the next two years. Jonathan Ross Goodman, President and CEO of Knight, will join Medison’s Board of Directors while Meir Jakobsohn, Founder and CEO of Medison, will join the Knight Board of Directors. The transaction is subject to customary conditions including approval by the TSX of the issuance and listing of the Knight shares under the transaction. The transaction is expected to close during the second week of September.
Read the full press release on www.gud-knight.com