Awakn Life Sciences Corp. (CSE: AWKN) (OTCQB: AWKNF) announced it would be bought by Graft Polymer (UK) PLC with Graft acquiring all of the company’s shares in a deal valued at C$8.8 million.

Graft is a UK-based biotechnology company listed on the London Stock Exchange under the symbol “GPL” and is currently focused on developing intellectual property and co-developing therapeutics for mental health and substance use disorders. In July 2024, Awakn announced that it had entered into a commercial collaboration agreement with Graft Polymer setting up the eventual acquisition.

“This proposed acquisition by Graft Polymer marks a significant milestone for Awakn Life Sciences and our mission to provide breakthrough therapeutics for substance use and other mental health disorders. We have had a significant portion of our operations in the UK for the entire life of our business and following the completion of the Proposed Transaction, Awakn will have access to the UK’s deep pool of liquidity as well as the international investor base positioned in London. We believe this transaction will create long-term value for our shareholders and provide new opportunities for growth and collaboration.” stated George Scorsis, Chairman of the Board of Directors and Special Committee.

According to the statement, each Awakn shareholder will receive 46.67 ordinary shares in Graft for each share held.  All issued and outstanding Common Share purchase warrants shall be converted into or exchanged for new ordinary share purchase warrants. The deal is expected to close by June 2025.

Dennis Purcell, Chairman of Graft Polymer, said, “This proposed acquisition marks an important milestone for Graft Polymer as we broaden our focus to address the pressing global challenges of addiction and mental health disorders. Awakn’s advanced research and clinical programs offer the potential to develop more effective and accessible treatments for these critical areas of need. We believe this strategic move will not only drive value for our shareholders but also contribute meaningfully to improving the lives of millions impacted by these conditions.”

Anthony Tennyson, the Chief Executive Officer and a director of Awakn was also appointed as Graft’s part-time Chief Executive Officer and to its board of directors in May 2024. Due to these positions, the statement said that Tennyson recused himself from the vote.

Troubled history

As of October 31, 2024, Awakn had not yet achieved profitable operations and had accumulated losses of C$32,247,049 and total liabilities of C$2.1 million. The company’s net loss in the most recent quarter was C$376,126 and had little revenue to report. The company sold its Norway businesses in 2023.

Relmada Therapeutics Inc. (Nasdaq: RLMD) will halt its Phase 3 studies of depression treatment REL-1017 following a data monitoring committee evaluation, sending the company searching for strategic alternatives.

The late-stage biotechnology company will discontinue both the Reliance II and Relight Phase 3 studies while continuing development of REL-P11, its modified psilocybin compound, according to a statement Monday.

The company’s decision comes after mounting financial pressure. As of September 30, Relmada reported an accumulated deficit of $622.2 million with $54.1 million in cash remaining, according to previous financial statements. The company had warned investors it projected “insufficient liquidity to sustain its operations through one year.”

CEO Sergio Traversa had expressed optimism about REL-1017’s potential just weeks ago, noting the trials were “poised to achieve meaningful, near-term value inflection points,” according to a previous statement.

The Florida-based company will now explore options including a potential sale of assets, merger, reverse merger or acquisition of new product rights, though it cautioned there’s no guarantee of any transactions. Relmada plans to engage a financial advisor to assist with the strategic review.

REL-1017 is a novel NMDA receptor channel blocker designed to target hyperactive channels while maintaining physiological glutamatergic neurotransmission, according to the firm. The company will maintain its Phase 1 study of REL-P11, a low-dose psilocybin derivative being investigated for metabolic diseases.

Relmada said it won’t provide further updates on the strategic review process unless required. The company has opened talks with potential financial advisors but hasn’t set a timeline for completing its evaluation of alternatives.

The Journal of American Medical Association (JAMA) published a report this week noting the increase in diversions of the drug ketamine. The report was authored by Joseph J. Palamar, PhD, Caroline Rutherford, MS and Katherine M. Keyes, PhD. and they obtained data on undistributed pharmaceutical ketamine diversion from the DEA via a Freedom of Information Act request. Palamar has written a previous report calling for more surveillance of ketamine.

The report stated that recreational use of illicit ketamine, off-label ketamine prescribing, and for-profit clinics have become more common, with a lack of regulatory oversight and increased direct-to-consumer advertising. It said, that in 1999, the US Drug Enforcement Administration (DEA) classified ketamine as a Schedule III controlled substance in response to increasing recreational use and thefts from veterinary clinics. Law enforcement seizures of illegal ketamine have increased but the authors want to examine how pharmaceutical ketamine was being diverted.

Increased diversion

The study found that there were 1355 reports of pharmaceutical ketamine diversion between 2017 and 2023. There were 195 diversions in 2017, and the number increased from 166 in 2020 to 230 in 2023. Ketamine lost in transit increased overall from 5.1% in 2017 to 45.2% in 2023

The authors found the following:

While employee and customer theft as a proportion of reported diversions increased, ketamine lost in transit became the most common reported diversion type in 2023. Although diversion from practitioners and hospitals remained most common, such diversions decreased, and diversion among reverse distributors increased. Whether these trends reflect increased ketamine prescribing or demand cannot be assessed.

The researchers acknowledged some limitations to their work. Specifically, the data on ketamine form factors such as lozenges vs. liquid wasn’t available. In addition to that missing data, diversions weren’t characterized as to whether it came from veterinary clinics or clinics with human patients. The diversion that happens after distribution through avenues like forged prescriptions was also not included. On top of that, remote working during the pandemic may have affected reporting timeframes.