Guilford And Gliatech To Merge

Inc. and Inc. have entered into a definitive merger agreement pursuant to which Guilford will acquire all of the outstanding common stock of Gliatech.

The transaction combines the capabilities of both companies in biopolymer development and the development of novel drugs for the treatment of central nervous system disorders.

The combined company will have three marketed products and nine product candidates in clinical development.

Craig R. Smith, MD, President and CEO of Guilford commented, “The strategic combination of our two companies will allow us to realize greater competitive advantages, achieve operational synergies and efficiencies, provide greater access to capital and create greater critical mass with which to pursue our corporate objectives.

Together, we have an excellent commercial platform with three marketed biopolymer products for the surgical marketplace and a broad and well-diversified pipeline of product candidates at every stage of clinical development.”

The combined company will consolidate its corporate and research operations in Baltimore, while maintaining a manufacturing facility in Solon, Ohio.

Dr. Smith will retain his position as President and CEO and Thomas O. Oesterling, Ph.D., Chairman and CEO of Gliatech, will join the Board of Directors and the management team and lead strategic planning activities for the Company.

“We are delighted to join forces with Guilford in building a first-class biopharmaceutical company,” commented Dr. Oesterling.

“It quickly became apparent as we entered negotiations that the strategic fit was excellent, both in terms of corporate structure and technology platform.

As a combined entity, we are in a position to build a strong commercial enterprise with the ability to increase product-related revenues and nurture a strong development pipeline.” The combined company also has several neurological programs in its research pipeline.

Its PARP and serine racemase programs aim to inhibit cell damage and death in acute and chronic neurodegenerative disorders including stroke, spinal cord trauma, Parkinson’s disease and inflammation.

The combined company is also developing compounds based on the activity of inflammation-producing glial cells to slow or inhibit the progression of Alzheimer’s disease; H3 agonists for the treatment of anxiety and insomnia; inhibitors of glycine transporters for potential treatment in schizophrenia, and a monoclonal antibody that may be useful in inflammatory diseases.

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