Swedish biotechnology firm Promore Pharma has planned to carry out a reverse acquisition of Cork medical devices company, PMD Solutions.
The deal will see Promore purchase all shares in PMD for a consideration of around €11m, which will be paid by newly issued shares in the Stockholm-based firm.
Founded in 2011 by Myles Murray, PMD Solutions specialises in respiratory rate monitors and employs more than 20 people. The firm’s primary product, RespiraSense received FDA approval in 2022 and in July of this year, PMD joined an accelerator programme to support the UK’s NHS. Currently, RespiraSense is used in 25 hospitals across the UK and Ireland.
The deal will see PMD listed on the NASDAQ First North exchange in Sweden by the end of the year pending all regulatory approvals, with the Cork firm set to hold 97.7% of the shares in Promore.
Established in Stockholm in 2002, Promore Pharma specialises in therapeutic peptides. Earlier this year, the company entered voluntary liquidation following a failed clinical trial for its product Ensereptide, with this deal seeing the proposed windup overturned.
Once the reverse takeover is completed, Promore will cease its operations and begin trading as PMD Device Solutions AB.
Currently, PMD generates over €2.8m in annual recurring revenue with gross margins of approximately 80%.
“This transaction presents a unique opportunity to support our continued market expansion,” said Myles Murray, founder and CEO of PMD.
“We are grateful to the support received from the Team and Board of Promore Pharma during this transaction and we are grateful to continue serving an increasing number of both patients and shareholders.”
“During the last few weeks, we have done all in our power to be able to offer the current shareholders of Promore Pharma opportunities to realize remaining values in Promore Pharma,” said Liquidator, Lars-Henrik Andersson.
“The situation for the company has been extremely challenging since April 2023, and I believe that the intended transaction is the best feasible solution for all stakeholders of Promore Pharma.”
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