Cellegy to acquire Biosyn

SOUTH SAN FRANCISCO, Calif., Oct. 8 (UPI) -- Cellegy Pharmaceuticals of South San Francisco, Calif., said Friday it has agreed to acquire Biosyn Inc. of Huntingdon Valley, Pa.

Cellegy is a specialty biopharmaceutical company that develops and commercializes prescription drugs for the treatment of gastrointestinal disorders, women's healthcare conditions and sexual dysfunction.

Biosyn Inc is a privately held biopharmaceutical company.

The addition of Biosyn, which leads in the development of a novel contraceptive gel, Savvy, for the prevention of HIV in women, expands Cellegy's near-term product pipeline and complements Cellegy's women's health focus.

Under terms of the deal, Cellegy will exchange of 2.5 million Cellegy common shares for all of Biosyn's issued and outstanding capital stock. Cellegy also will inject $3.25 million into the business in order to satisfy certain balance sheet liabilities and will pay up to an additional $15 million upon launch of Biosyn's lead product, Savvy in the United States and selected major overseas markets.