Medi-Tech completes deal for TheraPei

Canada's Forbes Medi-Tech has inked a deal to acquire San Diego-based TheraPei Pharmaceuticals. TheraPei was a technology spin-off from Sequenom and has been developing new therapies for type 2 diabetes and related metabolic diseases. To pay for the company, Forbes Medi-Tech will make a "small" up front payment, issue stock and make up to $50 million in milestone payments as the technology has a chance to prove itself. TheraPei's founder, Dr. John Nestor, will be appointed as the chief scientific officer of Forbes on closing.

"With Forbes' lead compound, FM-VP4, nearing completion of Phase II in the US, the Company has the development team and capabilities required to fully realize the significant potential of TheraPei's novel drug candidates," noted Charles Butt, president and CEO. "Dr. Nestor's extensive track record of successful drug discovery and development will help us optimize Forbes' existing FM-VPx library."

- see the release on the acquisition