Medicus Pharma to acquire Antev, expanding pipeline with potentially first-in-class prostate treatment

Medicus Pharma (NASDAQ:MDCX) announced that it has entered into a binding letter of intent to acquire Antev, a clinical-stage biotechnology firm developing a first-in-market product Teverelix for acute urinary retention (AUR) and high cardiovascular risk prostate cancer.  

Teverelix, a next-generation GnRH antagonist, targets the prevention of recurrent AUR in males aged 45 years and older with benign prostate hyperplasia.  

Antev is targeting a US$2 billion market for AUR with a Phase 2b study testing Teverelix in 390 men across the US and the European Union. 

For advanced prostate cancer in high cardiovascular risk patients, Antev is pursuing a US$4 billion market with a Phase 2b open-label study in 40 men, aiming for sustained castration with potentially lower cardiac toxicity.

"The LOI to acquire Antev represents strategic depth in our drug development program,” Medicus CEO Dr. Raza Bokhari said.

"Teverelix, a next generation GnRH antagonist, is relatively derisked and is well-positioned to become first-in-class product to prevent acute urinary retention recurrence and treat advanced prostate cancer in patients with high cardiovascular risk profile, collectively representing approximately $6 billion in potential market opportunity."

Shares of Medicus initially spiked 19% at Monday's open but settled around $4.27 in midmorning trade, a 7% gain.

Transaction terms

Under the terms of the agreement, Medicus will acquire all issued and outstanding shares of Antev through a share exchange transaction.

The transaction terms provide that Antev shareholders will receive 2,666,600 Medicus common shares, representing approximately a 19% aggregate equity stake in Medicus.

In addition to the share consideration, Antev shareholders will be eligible to receive up to US$65 million in contingent payments tied to future US FDA Phase 2 and New Drug Application approvals.

The consideration shares will be subject to a nine-month staggered lock-up period and an agreement granting certain voting rights to Medicus management for 36 months.

The companies stated that the transaction is expected to close before the end of June.