Power3 Medical Products this week said that it is terminating its merger agreement with StemTronix but is evaluating other possible acquisitions to augment its internal development programs.
The agreement to acquire StemTronix — a Texas company focused on developing stem cell-based therapeutics for tissue repair — was announced on Feb. 11. This week Power3 said a statement that it "temporarily restrained from completing [the deal] due to issues solely related to StemTronix."
Power3 did not elaborate on those issues.
The company added that in spite of the merger termination, it has been assured full assignment of a provisional patent recently filed by both firms covering technologies to enhance therapeutic capabilities by identifying a patient's own stem cells.
Power3 said that is targeting other opportunities to provide the company with technologies, intellectual assets, personnel, and capabilities. That includes promising stem cell research, the company said.
"We intend to take advantage of acquisition opportunities to augment our in-house product development programs," Ira Goldknopf, president and chief scientific officer of Power3, said in a statement. "We recognize that we cannot meet all of our research and discovery needs internally and can benefit from the research performed by other organizations," he added.
The company, based in The Woodlands, Texas, is currently being sued by Transgenomic, which alleges Power3 committed libel, fraud, and breach of contract. Power3 also is in the process of suing two shareholders, alleging insider trading.
In its complaint, the company alleges the shareholders of engaging in trading while they had non-public, material information about negotiations between Power3 and StemTronix for the acquisition of StemTronix (see related story this issue).