Tranzyme Pharma announced late Tuesday that it is merging with privately-held Ocera Therapeutics and moving its headquarters to California.
The all-stock deal will result in Ocera shareholders owning a majority of publicly-traded Tranzyme.
Tranzyme’s CEO, Vipin Garg, will leave the Durham company after the completion of the deal.
Linda Grais, Ocera’s president and CEO, will head the merged company while Frank Rousseau, Tranzyme’s chief medical officer, will lead the company’s Triangle office.
Richard Eisenstadt, Tranzyme Pharma's chief financial officer, is resigning effective Jan. 4 to pursue a new career opportunity, the Durham company announced Wednesday.
"On behalf of the entire team at Tranzyme Pharma, I would like to thank Rich for his many years of hard work and dedication at the company during his tenure as CFO," CEO Vipin K. Garg said in a statement. "Since joining Tranzyme in 2003, Rich has been a valuable member of our executive team. We wish him the best in his future endeavor."
Tranzyme's controller, Rhonda L. Stanley, will take over Eisenstadt's CFO duties after he departs.
Tranzyme Pharma reported a wider net loss in the first quarter.
The Durham drug-development company had a net loss of $8.4 million, or 34 cents per share, in the quarter, compared to a net loss of $3.4 million, or 24 cents per share, in the first quarter of 2011.
Revenue was $2.6 million, up from $2.3 million during the same period a year ago.
Analysts who cover the company had anticipated a loss of 33 cents per share and revenues of $2.4 million.
In March, Tranzyme shares fell 43 percent in a single day after the company announced that new test results demonstrated that its most advanced drug candidate performed no better than a placebo.
The company then halted development of the drug, ulimorelin, and shifted its focus to TZP-102, an experimental treatment for debilitating gastrointestinal problems triggered by diabetes and other diseases. That drug is in Phase 2 trials, with test data expected to be released before year's end.
"We are working diligently with our investigators to advance the study," CEO Vipin Garg said in a statement.
As of the end of March, Tranzyme had $42.6 million in cash on hand.
Tranzyme reported its first-quarter results after the markets closed on Thursday. On Friday its shares fell 9 cents to close at $2.77.
Tranzyme Pharma, a Durham drug-development company that raised nearly $50 million through an IPO last month, said today that first quarter revenue increased 64 percent.
Revenue for the three-month period that ended March 31 was $2.3 million.
The company reported a net loss of $3.4 million for the quarter, up from a loss of $2.7 million a year ago, due mainly to increased spending on clinical trials.
Tranzyme spent $4.5 million on research and development in the quarter, compared to $2.9 million in the same period a year ago.
Two Triangle business leaders were recognized last week as Ernst & Young’s entrepreneurs of the year in the Carolinas: Vipin Garg, CEO of Durham-based Tranzyme Pharma, and Rich Lee, founder and CEO of Raleigh-based Hosted Solutions.
The Carolinas winners, which also included several from the Charlotte area, will be eligible for the national entrepreneur award in November. The local winners demonstrate “success in the areas of innovation, financial performance and personal commitment to their businesses and communities,” according to a prepared statement.
Garg’s Tranzyme is a biotechnology company with about 40 employees that is developing experimental treatments for obesity, diarrhea and other ailments. The company has raised more than $50 million in venture capital funding.
Founded in 2001, Lee’s Hosted Solutions manages data centers in Raleigh, Cary, Charlotte and Boston. The company was bought last year by a Boston investment firm for $144 million. Hosted Solutions employs about 110 workers, including 75 in the Triangle.
