XORTX Announces Acquisition of Renal Anti-Fibrotic Therapeutic Program from Vectus Biosystems

Executive Summary

• XORTX Therapeutics entered into a binding term sheet to acquire Vectus Biosystems’ VB4‑P5 renal anti‑fibrotic therapeutic program (pre‑IND stage).
• Consideration is USD $3.0 million payable in XORTX common shares or equivalents at a deemed issue price of USD $0.86 per share, subject to adjustments and a lock‑up period for Vectus shareholders.
• Closing is expected within 90 days, pending customary conditions, regulatory approvals, and stock exchange compliance.

Key Details

• Target Assets: Intellectual property (patents, composition‑of‑matter and method‑of‑use claims in >30 jurisdictions), regulatory documentation, manufacturing data, and preclinical data for the VB4‑P5 small‑molecule program.
• Stage of Development: Pre‑IND (investigational new drug) stage; program aims to treat rare and prevalent kidney diseases by inhibiting/reversing renal fibrosis.
• Consideration: USD $3.0 million payable in XORTX common shares or share equivalents at a deemed issue price of USD $0.86 per security (subject to adjustment, not below the Discounted Market Price).
• Closing Timeline: Transaction to close no later than 90 days after execution of the term sheet, subject to customary closing conditions and regulatory approvals.
• Lock‑up Agreement: Vectus will be restricted from selling the received XORTX securities for 180 days post‑closing.
• Regulatory Filings: If requested by Vectus, XORTX will use reasonable commercial efforts to register the issued securities with the U.S. SEC.
• Strategic Fit: Acquisition aligns with XORTX’s focus on innovative therapies for progressive kidney disease and expands its pipeline beyond gout and ADPKD programs.

Notable Quotes

“The opportunity to acquire the VB4‑P5 program was highly compelling… it is directly aligned with our strategic focus on developing innovative therapies for progressive kidney disease.” – Dr. Allen Davidoff, CEO, XORTX