MONTREAL, Dec. 20 /PRNewswire-FirstCall/ - Akela Pharma Inc. (TSX: "AKL"), a drug development company focused on developing therapies for the inhalation and pain markets, today announced that due to unfavorable market conditions, particularly in the small and micro-cap sector, it has decided to abandon its US public offering initiative. The Company is currently contemplating other financing options. It is still the Company's intention to list its shares on a US exchange.
Akela also announces it has already started to implement significant cost reduction measures to bring its cash burn rate in line with its current and expected financial resources. The Company will primarily focus its R&D activities on its core programs. PharmaForm, the Company's drug formulation and manufacturing subsidiary located in Austin, Texas, is currently experiencing substantial growth, and is expected to contribute towards the Company's operating cash flow in the near term.
"Although the latest unfavorable market conditions did not allow us to complete our US public offering as originally planned, we remain extremely confident about the appeal and commercial potential of our products and platforms. We have aligned our corporate focus with our financial resources to ensure optimal returns on our core activities" said Dr Halvor Jaeger, CEO of Akela Pharma Inc.
About Akela Pharma Inc.
Akela Pharma is an integrated drug development company focused on developing therapies for the growing multi-billion dollar inhalation and pain markets. Its lead product, for the treatment of breakthrough cancer pain, is a fast-acting Fentanyl formulation delivered using the Company's TAIFUN(R) dry powder inhaler platform. Its pipeline also includes therapeutics for asthma, COPD, growth hormone deficiencies and controlled substance abuse deterrent formulations.
Akela's common shares trade on The Toronto Stock Exchange ("TSX") under the symbol "AKL" with 11.7 million shares outstanding.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Akela Pharma Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
SOURCE AKELA PHARMA INC.