Corgentech, AlgoRx to merge

By Jennifer Chiou

New York, Sept. 26 - Corgentech Inc. and AlgoRx Pharmaceuticals, Inc. announced they will merge to create a late-stage company largely focused on pain management and inflammation.

Under the agreement, Corgentech will issue its shares to AlgoRx stockholders, who will own 62% of the combined company. Corgentech investors will hold the remaining 38%.

The companies' boards have approved the agreement and must await shareholder consent.

"We believe that the combination of Corgentech and AlgoRx will add significant value for our stockholders by dramatically bolstering our product pipeline with late-stage product candidates that bring us closer to commercialization," said John P. McLaughlin, chief executive officer of Corgentech, in a news release.

The combined company will have four products in its pipeline, including AlgoRx's pain management drug candidates ALGRX 3268, which is in Phase III clinical trials, ALGRX 4975, in Phase II clinical trials, and ALGRX 1207, soon to enter the clinic, as well as Corgentech's NF-kappaB Decoy for eczema.

McLaughlin will be chief executive officer of the combined company while Ronald Burch, AlgoRx chief executive officer, will be vice president of development.

The companies said stockholder votes may occur in late December or early January.

Based in Secaucus, N.J., AlgoRx is a pharmaceutical company focused on the pain market.

Corgentech is a San Francisco-based biopharmaceutical focused on cardiovascular disease, inflammatory diseases and cancer. It has E2F Decoy for the prevention of coronary artery bypass graft failure.

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