OncBioMune Pharmaceuticals, a Baton Rouge-based firm that has developed a prostate cancer treatment known as ProsaVax, has completed the acquisition of Mexican specialty drug maker Vitel Laboratorios S.A.
The international acquisition occurred several months after it was originally planned due to the complex nature of the deal, says OncBioMune President and Chief Financial Officer Andrew Kucharchuk.
Under the terms of the deal, which is structured as an all-stock transaction, OncBioMune also will get two over-the-counter drugs—one that treats constipation and the other that treats stress—that Vitel is licensed to sell in Mexico, a news release says.
The deal also includes a 50% ownership interest in OncBioMune Mexico, a Mexican company the two entities jointly launched in August to develop and sell the firm’s ProscaVax vaccine in Central and South America.
“The acquisition of Vitel is expected to add a great deal of value to OncBioMune and represents a major milestone that immediately leapfrogs us years ahead in development, while providing cash flow to help fund development of our pipeline and commercialization of even more products,” OncBioMune CEO Jonathan Head says in the news release. “Bringing Vitel under our umbrella gives us a formidable network and international presence that opens the door to a litany of possibilities towards meeting our goals.”
Vitel founder Manuel Cosme Odabachian will join OncBioMune as general manager of global operations, and he also will spearhead ongoing and future international negotiations to expand the company’s portfolio, the release says. The acquisition is expected to transform OncBioMune into a revenue generating pharmaceutical company.
