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PharmaDrug to Acquire 40% Stake in Biotech Firm Canurta

Story Highlights
  • PharmaDrug Inc. plans to acquire a 40% stake in Canurta Inc., enhancing its focus on natural medicines.
  • The acquisition involves issuing PharmaDrug shares and includes Canurta’s CEO joining PharmaDrug’s board.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
PharmaDrug to Acquire 40% Stake in Biotech Firm Canurta

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Pharmadrug ( (TSE:PHRX) ) has shared an update.

PharmaDrug Inc. has signed a non-binding Letter of Intent to acquire up to a 40% equity interest in Canurta Inc., a biotechnology firm specializing in botanical drugs targeting inflammation and neurodegenerative diseases. This strategic move involves a two-tranche acquisition of Canurta’s units, with PharmaDrug issuing a significant number of its shares in exchange. The transaction, if completed, will see Canurta’s CEO join PharmaDrug’s board, potentially enhancing its biotechnology pipeline and capital market strategies. The deal is subject to various conditions, including regulatory approvals and a definitive agreement, and includes a clawback provision for Canurta.

Spark’s Take on TSE:PHRX Stock

According to Spark, TipRanks’ AI Analyst, TSE:PHRX is a Underperform.

Pharmadrug’s overall score is significantly impacted by its weak financial performance, characterized by zero revenue, high leverage, and negative cash flows. While there is some short-term technical momentum, the lack of profitability and negative valuation metrics pose substantial risks to potential investors.

To see Spark’s full report on TSE:PHRX stock, click here.

More about Pharmadrug

PharmaDrug Inc. is a specialty pharmaceutical company focused on the research, development, and commercialization of natural medicines. The company operates within the pharmaceutical industry, concentrating on innovative treatments that leverage natural compounds.

Average Trading Volume: 227,272

Technical Sentiment Signal: Sell

Current Market Cap: C$1.62M

See more insights into PHRX stock on TipRanks’ Stock Analysis page.

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