Synergy Pharmaceuticals Inc. (Nasdaq: SGYP), a developer of new drugs to treat gastrointestinal diseases and disorders, today announced the planned spin-off of its FV-100 assets into a separate publicly traded company. Synergy’s newly formed subsidiary, ContraVir Pharmaceuticals, Inc., the company which will hold the FV-100 assets (“ContraVir”), has filed a Form 10 Registration Statement (“Form 10”) with the U.S. Securities and Exchange Commission. The separation contemplates a 100% distribution of the ContraVir shares of common stock, now held by Synergy, to Synergy’s stockholders on a pro-rata basis.
"The filing of the Form 10 by ContraVir is an important step in the process of developing and establishing our FV-100 assets as a new, stand-alone company with its own strategic focus and priorities," said Dr. Gary S. Jacob, Chief Executive Officer of Synergy and Chief Executive Officer of ContraVir. “As two distinct businesses, Synergy and ContraVir will be better positioned to capitalize on significant growth opportunities and provide greater focus on their respective businesses and strategic priorities."
ContraVir expects to look for a new chief executive officer upon completion of the separation from Synergy. Furthermore, ContraVir expects to apply to have its shares quoted for trading on the Over-the-Counter Bulletin Board in the near future.
Completion of the transaction is subject to a number of conditions, including effectiveness of the registration statement filed with the SEC and other customary conditions. The transaction also remains subject to final approval by the Synergy Board of Directors. Synergy notes that there can be no assurance that any separation transaction will ultimately occur, or, if one does occur, its terms or timing.The Form 10 contains important information about ContraVir and the separation, including an overview of the business which ContraVir will operate and of the company's competitive strengths, strategies and risk factors. A copy of the Form 10 is available at www.sec.gov. Additionally, the Form 10 can be found in the Investor Relations section of Synergy’s website at http://www.synergypharma.com. About ContraVir Pharmaceuticals, Inc. ContraVir is a biopharmaceutical company focused primarily on the development of drugs to treat herpes zoster, or shingles, which is an infection caused by the reactivation of varicella zoster virus or VZV. Our lead candidate is FV-100 is an orally available nucleoside analogue prodrug of CF-1743 that we are developing for the treatment of shingles. Published preclinical studies demonstrate that FV-100 is significantly more potent against VZV than acyclovir, valacyclovir, and famciclovir, the FDA-approved drugs used for the treatment of shingles. Preclinical studies further demonstrate that FV-100 has a more rapid onset of antiviral activity, and may fully inhibit the replication of VZV more rapidly than these drugs at significantly lower concentration levels. In addition, pharmacokinetic data from completed phase 1 and 2 clinical trials suggest that FV-100 has the potential to demonstrate antiviral activity when dosed orally once-a-day at significantly lower levels than valacyclovir, acyclovir, and famciclovir.