KBL Merger Corp. IV Acquires CannBioRex Pharmaceuticals, a Developer of Cannabinoid-Based Anti-Inflammatory Therapies

Recently, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that healthcare acquisition company KBL Merger Corp.IV (KBL Merger) announced the acquisition of pharmaceutical company CannBioRex Pharmaceuticals Corp (CannBioRex). The final agreement was signed on July 26. No financial terms of the acquisition were disclosed.

Headquartered in Toronto, Canada, CannBioRex is a pharmaceutical company. The company primarily develops anti-inflammatory drugs based on cannabinoids to help patients treat inflammatory conditions such as osteoarthritis, rheumatoid arthritis, and acute and chronic pain. CannBioRex’s co-founders, Professor Marc Feldmann and Professor Raphael Mechoulam, are experts in the field of anti-inflammatory drug development. Professor Feldmann has made significant achievements in developing tumor necrosis factor (TNF) therapies and was awarded the Lasker Medical Research Award. Meanwhile, Professor Steinman participated in the development of the natalizumab injection Tysabri, which is used to treat multiple sclerosis and inflammatory bowel disease; this drug has currently generated $2 billion in market revenue.

Following the completion of the acquisition, Professor Feldmann and Professor Steinman, who possess extensive expertise, will continue to oversee CannBioRex’s drug development projects.

CannBioRex currently has three drug development projects. The first is exploring new therapies for fibrotic diseases, with clinical trials for a drug treating Dupuytren's contracture planned for the second half of 2020. The second involves developing drugs based on pharmaceutical-grade cannabinoids, primarily for the treatment of arthritis, acute pain, diabetes, and obesity. The third focuses on developing novel oral therapies that target nicotinic receptors in the brain to treat inflammatory conditions such as ulcerative colitis, gout, and multiple sclerosis.

Professor Feldmann stated, “These three projects are pivotal to the development of therapies for inflammatory diseases. CannBioRex boasts a team of expert scientists from the University of Oxford, Stanford University, and the Hebrew University of Jerusalem. We are dedicated to elucidating the mechanisms by which cannabinoids treat inflammation, advancing drug development and clinical trials, and synthesizing novel patented compounds, such as new cannabinoids, to enhance therapeutic efficacy.”

KBL Merger, established in 2016 and headquartered in New York, USA, is a healthcare-focused special purpose acquisition company (SPAC). The company primarily concentrates on the healthcare sector, dedicating itself to acquiring small and mid-sized growth enterprises in the U.S. healthcare or health-tech fields. KBL Merger is the fourth healthcare SPAC founded by medical expert Dr. Marlene Krauss in the healthcare sector. It completed its initial public offering (IPO) in June 2017, raising $115 million. The company boasts a professional healthcare investment team composed of senior executives, institutional investors, clinicians, and venture capitalists, with a primary focus on investing in early- and mid-stage growth companies.

Dr. Marlene Krauss stated, “Upon completion of the transaction, we will become one of the few publicly listed companies dedicated to the development of pharmaceutical-grade cannabinoids and anti-inflammatory drugs. KBL Merger will support the synthesis of CannBioRex’s pharmaceutical-grade cannabinoids and the clinical trials of novel therapeutics for inflammation, adhering to regulatory standards to provide safer and more effective medications for patients. This acquisition will open up a vast pharmaceutical market for KBL Merger, driving the company’s growth in the healthcare sector.”

(Compiled by Xu Xiaoxue)