Scintilla Pharmaceuticals Inc. has agreed to buy venture capital-backed Semnur Pharmaceuticals Inc. for up to $200 million. Scintilla is a subsidiary of San Diego-based Sorrento Therapeutics Inc. (Nasdaq: SRNE). Financial deal terms call for Scintilla to pay $60 million up front, consisting of $40 million in cash and $20 million in common stock, and up to an additional $140 million in cash based on the target’s future performance.
Los Altos, California-based Semnur develops injectable drugs that are used to potentially treat chronic back pain. The company’s main product is scheduled to begin phase 3 clinical trials in 2017. Semnur is backed by Canaan Partners, Frazier Healthcare and Vivo Capital.