Danbury-based pharmaceutical firm Biodel Inc. is merging with privately held Boston-based Albireo Limited, forming Albireo Pharma Inc. and focusing on the development of a range of treatments for liver and gastrointestinal diseases and disorders.
Under the terms of the agreement, Albireo stockholders will be able to exchange their shares for newly issued Biodel shares; on a pro forma basis, Albireo stockholders will own approximately 67 percent of the combined entity, with Biodel stockholders owning the remaining 33 percent, subject to certain adjustments based on net cash of Biodel and Albireo prior to closing. A group of existing Albireo investors, including Phase4 Ventures, TPG Biotech, TVM Capital Life Science and AstraZeneca, has committed to invest an additional $10 million prior to the closing of the transaction.
In addition to the name change, Albireo Pharma plans to change its NASDAQ stock ticker from BIOD to ALBO. Current Albireo Limited President and CEO Dan Cooper will retain that title at the combined company, whose headquarters will be in Boston; the fate of Biodel’s Danbury personnel and office space has not been announced.