Full Press Release Details
Therapeutics Completes Merger Transaction with Proteon Therapeutics
of ArTara to commence trading on Nasdaq under new ticker symbol "TARA" effective January 10, 2020
completes previously announced equity financing of $42.5 million concurrently with the closing of the merger
company will focus on developing treatments for Lymphatic Malformations and
failure associated liver disease
NEW YORK, January 9, 2020 - ArTara
Therapeutics, Inc. (Nasdaq: TARA) ("ArTara" or the "Company"),
a clinical-stage company developing treatments for rare and specialty diseases with significant unmet needs, today announced the
completion of the merger with Proteon Therapeutics, Inc. ("Proteon") (Nasdaq: PRTO) and associated equity
financing. The merged company will operate under the name ArTara Therapeutics, Inc., and its shares will commence trading
on the Nasdaq Capital Market at the open of market trading on January 10, 2020, under the ticker symbol "TARA."
the closing of the merger signifies a transformative event that will provide ArTara with the opportunity to achieve its next level
of corporate growth as we advance our pipeline of de-risked, unique solutions for rare and specialty diseases," said Jesse
Shefferman, chief executive officer of ArTara. "We look forward to achieving a number of exciting milestones in our development
programs in the coming year."
The combined company
also closed an equity financing of approximately $42.5 million with a syndicate of healthcare dedicated investors. The net proceeds
from this financing will fund development of ArTara's lead assets, TARA-002 and intravenous (IV) choline chloride.
ArTara is focused on
acquiring and modernizing high-potential, de-risked product candidates for rare and specialty diseases. The Company's lead
program, TARA-002, is a follow-on biologic of the innovator therapy OK-432, an inactivated Group A streptococcus bacterial preparation
approved in Japan for the treatment of lymphangiomas, also known as Lymphatic Malformations or LM's, along with several other
specialty indications. ArTara plans to initially pursue development of TARA-002 for the treatment of LM's which are rare,
typically congenital, malformations of the lymphatic vasculature. TARA-002's innovator therapy, OK-432, has been interrogated
in dozens of additional indications through investigator-sponsored studies around the world and ArTara will conduct preliminary
investigations into a number of these indications after advancing the LM's program.
asset, IV choline chloride, is a phospholipid substrate replacement therapy that has shown promising results in a Phase 2 study
in intestinal failure associated liver disease (IFALD). ArTara's IV choline chloride has also been granted orphan drug designation
The combined company
will be led by Jesse Shefferman, its chief executive officer and will be headquartered in New York.
Following the closing
of the merger and the financing, the previous Proteon stockholders will own approximately 10% of the combined company, while the
previous ArTara security holders and new investors will own approximately 90% of the combined company (on a fully diluted basis).
Co. acted as financial advisor to Proteon for the merger, and Morgan, Lewis & Bockius LLP acted as legal counsel to Proteon.
Ladenburg Thalmann & Co. Inc. acted as financial advisor to ArTara, and Cooley LLP acted as legal counsel to ArTara.
About ArTara Therapeutics, Inc.
ArTara is focused on identifying and optimizing
product candidates for patients suffering from rare and specialty diseases where there is a significant unmet need. ArTara's
current development programs focus on the treatment of rare diseases in structural and connective tissues, as well as rare hepatology/gastrointestinal
and metabolic disorders. The Company's lead program, TARA-002, is being developed for the treatment of lymphatic malformations.
ArTara's second program, IV choline chloride, is a phospholipid substrate replacement therapy in development for the treatment
of IFALD. For more information, visit https://artaratx.com/for-investors/.
Forward-Looking Statements
This communication contains "forward-looking" statements,
including, without limitation, statements related to the anticipated benefits of the transactions contemplated by the merger and
the financing and the related transactions, the anticipated benefits of the sale of $42.5 million of ArTara's common stock
to certain stockholders, the anticipated trading of the combined company's stock on the Nasdaq Capital Market, and statements
related to ArTara's development programs. Any statements contained in this communication that are not statements of historical
fact may be deemed to be forward-looking statements. These forward-looking statements are based upon ArTara's current expectations.
Forward-looking statements involve risks and uncertainties. ArTara's actual results and the timing of events could differ
materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include,
without limitation, related to ArTara's ability to successfully integrate the operations of Proteon and ArTara and achieve
the potential benefits of the merger; the Company's ability to advance its preclinical programs and the uncertain and time-consuming
regulatory approval process. Additional risks and uncertainties relating to ArTara and its business can be found under the caption
"Risk Factors - Risks Related to ArTara" in Proteon's Registration Statement on Form S-4 initially filed
with the SEC on November 7, 2019, as amended. ArTara expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained herein to reflect any change in ArTara's expectations with
regard thereto or any change in events, conditions or circumstances on which any such statements are based.
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