TRxADE Health, Inc. Announces Business Combination with Scienture, Inc., in a Transaction Valued at $103 Million
TRxADE Health, Inc. (Nasdaq: MEDS) and Scienture, Inc. have announced the closing of their business combination in an all-stock transaction valued at $103 million. TRxADE acquired all of Scienture's assets in exchange for shares of TRxADE stock, including common stock and non-voting convertible preferred stock. The combined company, to be renamed Scienture Holdings, Inc., will focus on bringing innovative branded and specialty pharmaceutical products to market.
The merger aims to enhance patient care and add value to the healthcare system. Scienture's portfolio is supported by an experienced leadership team with expertise in various aspects of pharmaceutical development and commercialization. The company's patient-centric approach targets a wide range of therapeutic areas, with a commitment to improving health outcomes for patients, physicians, and other healthcare stakeholders.
TRxADE Health, Inc. (Nasdaq: MEDS) e Scienture, Inc. hanno annunciato la conclusione della loro combinazione aziendale in una transazione interamente azionaria valutata a 103 milioni di dollari. TRxADE ha acquisito tutti gli asset di Scienture in cambio di azioni di TRxADE, comprese azioni comuni e azioni privilegiate convertibili non votanti. La società combinata, che sarà rinominata Scienture Holdings, Inc., si concentrerà sull'immissione sul mercato di prodotti farmaceutici innovativi e specializzati.
La fusione mira a migliorare l'assistenza ai pazienti e ad aggiungere valore al sistema sanitario. Il portafoglio di Scienture è supportato da un team di leadership esperto con competenze in vari aspetti dello sviluppo e della commercializzazione farmaceutica. L'approccio incentrato sul paziente dell'azienda si rivolge a una vasta gamma di aree terapeutiche, con l'impegno di migliorare i risultati di salute per pazienti, medici e altri stakeholder del settore sanitario.
TRxADE Health, Inc. (Nasdaq: MEDS) y Scienture, Inc. han anunciado el cierre de su combinación comercial en una transacción totalmente en acciones valorada en 103 millones de dólares. TRxADE adquirió todos los activos de Scienture a cambio de acciones de TRxADE, incluyendo acciones comunes y acciones preferentes convertibles sin derecho a voto. La empresa combinada, que será renombrada Scienture Holdings, Inc., se centrará en llevar al mercado productos farmacéuticos innovadores de marca y de especialidad.
La fusión tiene como objetivo mejorar la atención al paciente y agregar valor al sistema de salud. El portafolio de Scienture está respaldado por un equipo de liderazgo experimentado con experiencia en varios aspectos del desarrollo y la comercialización farmacéutica. El enfoque centrado en el paciente de la empresa se dirige a una amplia gama de áreas terapéuticas, con un compromiso de mejorar los resultados de salud para pacientes, médicos y otros actores del sistema de salud.
TRxADE Health, Inc. (Nasdaq: MEDS)와 Scienture, Inc.가 업무 통합을 종료했다고 발표했습니다. 이 거래는 1억 3백만 달러로 평가되는 전량 주식 거래입니다. TRxADE는 TRxADE 주식, 즉 보통주와 비투표 전환 우선주에 대한 대가로 Scienture의 모든 자산을 인수했습니다. 통합 회사는 Scienture Holdings, Inc.로 이름을 바꾸고 혁신적인 브랜드 및 전문 의약품을 시장에 출시하는 데 집중할 것입니다.
이번 합병은 환자 치료를 향상시키고 의료 시스템에 가치를 추가하는 것을 목표로 합니다. Scienture의 포트폴리오는 제약 개발 및 상업화의 다양한 측면에서 전문성을 갖춘 경험 있는 리더십 팀에 의해 지원됩니다. 이 회사의 환자 중심 접근 방식은 다양한 치료 분야를 대상으로 하며, 환자, 의사 및 기타 의료 이해관계자의 건강 결과를 개선하는 데 헌신하고 있습니다.
TRxADE Health, Inc. (Nasdaq: MEDS) et Scienture, Inc. ont annoncé la clôture de leur combinaison d'activités dans le cadre d'une transaction entièrement en actions d'une valeur de 103 millions de dollars. TRxADE a acquis tous les actifs de Scienture en échange d'actions de TRxADE, y compris des actions ordinaires et des actions privilégiées convertibles sans droit de vote. La société fusionnée, qui sera rebaptisée Scienture Holdings, Inc., se concentrera sur la mise sur le marché de produits pharmaceutiques innovants de marque et spécialisés.
La fusion vise à améliorer les soins aux patients et à ajouter de la valeur au système de santé. Le portefeuille de Scienture est soutenu par une équipe dirigeante expérimentée, possédant une expertise dans divers aspects du développement et de la commercialisation pharmaceutique. L'approche centrée sur le patient de l'entreprise vise un large éventail de domaines thérapeutiques, avec l'engagement d'améliorer les résultats de santé pour les patients, les médecins et d'autres parties prenantes du secteur de la santé.
TRxADE Health, Inc. (Nasdaq: MEDS) und Scienture, Inc. haben den Abschluss ihrer Geschäftskombination in einer rein aktienbasierten Transaktion im Wert von 103 Millionen Dollar bekannt gegeben. TRxADE erwarb alle Vermögenswerte von Scienture im Austausch gegen TRxADE-Aktien, einschließlich Stammaktien und stimmlosen umwandlungsfähigen Vorzugsaktien. Das kombinierte Unternehmen, das in Scienture Holdings, Inc. umbenannt werden soll, wird sich darauf konzentrieren, innovative Marken- und Spezialpharmazeutika auf den Markt zu bringen.
Das Ziel der Fusion ist es, die Patientenversorgung zu verbessern und dem Gesundheitssystem Wert hinzuzufügen. Das Portfolio von Scienture wird von einem erfahrenen Führungsteam unterstützt, das über Fachkenntnisse in verschiedenen Aspekten der pharmazeutischen Entwicklung und Vermarktung verfügt. Der patientenorientierte Ansatz des Unternehmens zielt auf ein breites Spektrum therapeutischer Bereiche ab und hat sich der Verbesserung der Gesundheitsergebnisse für Patienten, Ärzte und andere Stakeholder im Gesundheitswesen verschrieben.
- All-stock transaction valued at $103 million, potentially indicating a significant increase in company value
- Acquisition of Scienture's assets, expanding TRxADE's portfolio and market presence
- Combined company to remain Nasdaq-listed, maintaining investor accessibility and liquidity
- Focus on innovative branded and specialty pharmaceutical products, potentially leading to new revenue streams
- Experienced leadership team with multidisciplinary expertise in pharmaceutical development and commercialization
- Potential shareholder dilution due to the issuance of new common stock and convertible preferred stock
- Integration risks associated with merging two companies and their operations
- Uncertainty regarding the success of Scienture's product pipeline and market acceptance
The $103 million all-stock business combination between TRxADE Health and Scienture marks a significant shift in the specialty pharmaceutical landscape. This deal creates a Nasdaq-listed entity with a focus on innovative branded and specialty pharmaceuticals, potentially enhancing shareholder value.
Key financial implications include:
- Increased market capitalization and potential for improved liquidity
- Diversification of revenue streams through Scienture's product portfolio
- Potential for synergies in R&D and commercialization efforts
However, investors should note that all-stock transactions can lead to dilution for existing shareholders. The success of this merger will largely depend on Scienture's ability to deliver on its pipeline and the combined company's execution of its growth strategy. While the deal shows promise, it's important to monitor the integration process and upcoming product developments to gauge the long-term value creation potential.
This merger represents a strategic move in the specialty pharmaceutical sector, combining TRxADE's existing platform with Scienture's innovative product pipeline. The focus on patient-centric approaches and novel specialty product concepts aligns with current industry trends towards personalized medicine and value-based healthcare.
Scienture's emphasis on developing products that "significantly enhance the standard of care" could potentially lead to:
- Higher profit margins compared to generic pharmaceuticals
- Improved market positioning in niche therapeutic areas
- Increased bargaining power with payers and healthcare providers
The success of this venture will hinge on the combined company's ability to navigate the complex regulatory landscape and effectively commercialize its pipeline. Investors should closely monitor upcoming clinical trial results and regulatory milestones to assess the potential market impact of Scienture's products.
The business combination between TRxADE and Scienture represents a bold strategic move aimed at creating a more competitive entity in the specialty pharmaceutical market. By acquiring Scienture's assets, TRxADE is effectively pivoting its business model and rebranding itself as "Scienture Holdings, Inc."
This transformation brings both opportunities and challenges:
- Potential for accelerated growth through Scienture's innovative product pipeline
- Access to Scienture's experienced management team with multidisciplinary expertise
- Challenges in integrating two distinct corporate cultures and operational models
The success of this merger will depend on effective post-merger integration and the ability to leverage synergies between the two companies. Investors should pay close attention to any updates on the integration process, changes in leadership structure and the combined company's ability to maintain its Nasdaq listing while executing its new strategy.
Scienture, Inc., a private branded and specialty pharmaceutical company, entered into a business combination with TRxADE Health Inc., in an all-stock transaction valued at
TAMPA, FL and COMMACK, NY, July 26, 2024 (GLOBE NEWSWIRE) -- TRxADE HEALTH, INC. (“TRxADE”) (Nasdaq: MEDS) and Scienture, Inc. (“Scienture”) today announced the closing of TRxADE’s business combination with Scienture in an all-stock transaction (the “Business Combination”). TRxADE acquired all of Scienture’s assets in exchange for shares of TRxADE stock, in a combination of common stock and non-voting convertible preferred stock. TRxADE will change its name to “Scienture Holdings, Inc.” subsequent to the future conversion of the non-voting convertible preferred stock and the combined company is intended to continue as a Nasdaq-listed company.
The Business Combination results in a combined company that will be focused on bringing to market innovative branded, specialty pharmaceutical products that significantly enhance the standard of care, while adding value to patients, caregivers and the healthcare system. Scienture’s current portfolio of products is supported by an accomplished leadership and management team with many years of multidisciplinary experience across Product Development, Clinical Operations, Manufacturing and Commercial Operations.
Scienture is passionate about improving the lives of patients by delivering unique solutions through its novel specialty product concepts. By combining a patient-centric approach and a well thought out development and go to market commercial strategy, Scienture intends to shift the dynamic of care to revolve around the patient for a wide range of therapeutic areas.
“We are very excited about the merger and believe the new combined company will provide the vehicle for our future expansion,” stated Shankar Hariharan, Ph.D., President & CEO of Scienture Inc. “Our mission at Scienture is in developing unique specialty product concepts and solutions that bring enhanced value to patients, caregivers and healthcare systems. Our assets in development are across therapeutics areas, indications and cater to different market segments. We are committed to serving patients, physicians and other healthcare stakeholders to attain better health outcomes.”
About the Business Combination:
The Business Combination is structured as a stock for stock exchange whereby all of the outstanding equity securities of Scienture are to be exchanged for a combination of TRxADE common stock and non-voting convertible preferred stock. Upon completion of the proposed Business Combination and future conversion of the non-voting convertible preferred stock, on a pro forma basis and based upon the number of TRxADE shares to be issued in the proposed Business Combination, current Scienture stockholders are expected to own approximately
The boards of directors of both companies have unanimously approved the Business Combination. Suren Ajjarapu, TRxADE’s current Chairman and CEO will continue to serve as Chairman and CEO of the combined company. The current members of the Board of Directors of TRxADE will continue to serve on the Board of Directors of the combined company with the addition of two members designated by Scienture.
Advisors
Dykema Gossett PLLC served as legal counsel for TRxADE and Goodwin Procter LLP served as legal counsel for Scienture.
About Scienture
Scienture Inc. is a NY based pharmaceutical company. We are a highly experienced team of industry professionals who are passionate about developing unique specialty product concepts and solutions that bring enhanced value to patients and healthcare systems. Our assets in development are across therapeutics areas, indications and cater to different market segments. Scienture’s is a fully fitted company with strategic capabilities across R&D, Manufacturing, Sales and Marketing and Commercial Operations. For more information, visit Scienture’s website at www.scienture.com.
About TRxADE
TRxADE HEALTH, INC. historically focused on health services IT assets and operations aimed at digitalizing the retail pharmacy experience. Our current primary operations are conducted through our wholly-owned subsidiary, Integra Pharma Solutions, LLC (“IPS”), which is a licensed pharmaceutical wholesaler and sells brand, generic and non-drug products to customers. IPS customers include all healthcare markets including government organizations, hospitals, clinics and independent pharmacies nationwide.
Additional Information and Where to Find It
In connection with the Business Combination, TRxADE intends to file relevant materials with the United States Securities and Exchange Commission (the “SEC”), including an Information Statement on Schedule 14C (the “Information Statement”). TRxADE will mail the Information Statement to the TRxADE stockholders.
Investors and stockholders of TRxADE are urged to read these materials when they become available because they will contain important information about TRxADE and the Business Combination. This communication is not a substitute for the Information Statement or any other documents that TRxADE may file with the SEC or send to stockholders in connection with the Business Combination. Investors and stockholders may obtain free copies of the documents filed with the SEC, once available, on the SEC’s website at www.sec.gov or by directing a request to TRxADE at 6308 Benjamin Rd, Suite 708, Tampa, Florida 33634, Attention: Secretary; or by phone at (800) 261-0281.
Cautionary Statements Regarding Forward-Looking Statements
This press release contains certain statements that may be deemed to be “forward-looking statements” within the federal securities laws, including the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. Such forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, and statements regarding stockholder approval of the conversion rights of the non-voting convertible preferred stock. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. In some cases, you can identify forward-looking statements by the following words: “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” or the negative of these terms or other similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to a number of risks and uncertainties (some of which are beyond our control) that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. These risks include risks relating to agreements with third parties; our ability to raise funding in the future, as needed, and the terms of such funding, including potential dilution caused thereby; our ability to continue as a going concern; security interests under certain of our credit arrangements; our ability to maintain the listing of our common stock on the Nasdaq Capital Market; claims relating to alleged violations of intellectual property rights of others; the outcome of any current legal proceedings or future legal proceedings that may be instituted against us; unanticipated difficulties or expenditures relating to our business plan; and those risks detailed in our most recent Annual Report on Form 10-K and subsequent reports filed with the SEC.
Forward-looking statements speak only as of the date they are made. TRxADE undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as otherwise provided by law.
Contacts:
TRxADE
TRxADE HEALTH, INC.
6308 Benjamin Rd, Suite 708
Tampa, Florida 33634
Phone number is 1-866-468-6535
Email is IR@Rxintegra.com
Scienture
Scienture Inc.
20 Austin Boulevard
Commack, New York 11725
Phone: (631) 670-6039
Email: investorrelations@Scienture.com
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