4D Pharma expands research with Tuscana acquisition

4D Pharma expanded its research capabilities on Wednesday, acquiring university-based startup Tuscana Health Limited.

The AIM traded pharmaceutical company, focused on the development of live biotherapeutics, said Tuscana - based at University College Cork - was founded to investigate the use of microbiome signatures to aid the diagnosis and treatment of diseases.

Following the acquisition, 4D Pharma said it would build on that research, investing in Tuscana's platform and building further capability at the APC Microbiome Institute at University College Cork.

"Having worked with the founders of Tuscana and the APC, it was clear that together we combine the expertise and research at Tuscana with 4D Pharma's MicroRx platform, research and therapeutic programmes to build what we believe will be a new direction in diagnostics," said 4D chief executive Duncan Peyton.

The consideration was to be satisfied by the issue of up to 1,410,603 4D Pharma shares, with 410,603 to be issued upfront at a price of £7.55 - the average mid-market price for the five business days leading up to the acquisition.

4D Pharma said the remaining shares would be issued subject to the completion of milestones.

The initial focus of the combined operation would be on the diagnosis and patient stratification for Irritable Bowel Syndrome, with a longer term focus on building a diagnostic platform across multiple disease areas.

"We believe the diagnostic platform developed will become an important part of patient care, giving health professionals an understanding of how, or more importantly whether, a patient will respond to a therapeutic regime," Peyton said.

Application had been made for the new 4D Pharma shares to be admitted to trading on AIM, with approval and admission expected on 15 February.