cklife sciences (00775.HK) announced that its subsidiary WEX Pharmaceuticals has merged with nasdaq-listed biotechnology company virios therapeutics (VIRI.US), with the completion of the transaction, cklife sciences will hold approximately 15.9% of VIRI shares and will be granted convertible preferred shares, increasing its stake to about 90.7% after the conversion of preferred shares into common shares. The new merged company will be renamed Dogwood Therapeutics (DWTX.US) and will maintain its usa listing status.

Deputy Chairman and Executive Director of cklife sciences, Yu Yingcai, revealed at a media luncheon that the relevant transaction was completed synchronously upon the signing of the agreement, and all renaming procedures are expected to be completed tomorrow (9th). However, as all preferred shares need to be converted with the consent of VIRI shareholders and to meet the conditions of the nasdaq exchange, it is estimated that it will take about a year to complete.

He pointed out that VIRI has experience in the research and commercialization of pain management, and through this transaction, it can bring in a new financing channel for the future development of WEX's core analgesic drug Halneuron based on pufferfish toxin research. While planning the preferred share conversion process, new investors will be introduced to Dogwood. Emphasizing that the introduction of new funds can accelerate project development, the company is also happy to see its shareholding diluted.

Deputy Vice President and Chief Scientific Officer of cklife sciences, Du Jianming, added that the non-opioid analgesic market has considerable potential and strong demand, Halneuron is conducting clinical trials for the treatment of cancer-related pain (CRP) and chronic intractable neuropathic pain (CINP). In addition, preclinical research is also being conducted on acute pain and ocular pain.

As for the melanoma vaccine Seviprotimut-L developed by subsidiary Polynoma, Du Jianming stated that the production progress of the product was hampered during the epidemic, slowing down the research progress. Currently, it is expected to complete the necessary production processes before next year to advance to phase III trials. Yu Yingcai added that since the project is ready for phase III trials, the company will prioritize funding for it.