NEW YORK, Feb. 11 - CytRx, an Atlanta-based biotech company, on Monday has said it will merge with Global Genomics Capital, a privately held holding company for genomics firms.
The terms of the deal, which was approved by CytRx's board and still awaits the green light from both firms' shareholders, call for CytRx to acquire all outstanding shares of Global Genomics. In return, the biotech company will issue roughly 9.9 million shares of common stock. The company also said it will change its name to Global Genomics.
Other details of the deal, slated to close in May, were not disclosed.
Steven A. Kriegsman, chairman and founder of Global Genomics, will become president, CEO, and a director of the new company, and Jack J. Luchese, president and CEO of CytRx, will remain as president and CEO through the merger transition. Luchese's fate following the mergers was not immediately known.
"We envision that the combination of genomics and therapeutics is where biotechnology is headed," said Kriegsman. "We intend to be in the forefront of that movement."
Global Genomics, of Los Angeles, own 40 percent of Blizzard Genomics and five percent in Psynomics.