Montreal-based Paladin Labs Inc. (TSX:PLB) has acquired all existing and outstanding shares of Vancouver biotech Allon Therapeutics Inc. (TSX:NPC), both companies announced this week.
Allon sought creditor protection in May this year. In December 2012, the company announced that trials of its drug intended to treat a rare neurological disorder, davunetide, had failed to produce desired results. The trials cost Allon $100 million. On announcement of this failure, the company’s stock dropped 95% in a single day – from $0.43 per share to $0.02 – and jobs were slashed by 40%.
Paladin is now the sole shareholder of Allon, which will cease being a reporting issuer in Canada. All issued and outstanding shares and other securities were cancelled prior to this transaction.
