Denali, Can-Fite sign agreement to conclude ophthalmology spinoff

Jun 6 2011

Can-Fite BioPharma Ltd (TASE:CFBI), a biotechnology company developing small molecule drugs for the treatment of inflammatory, ophthalmic, and liver diseases, traded on the Tel Aviv Stock Exchange, signed today an agreement to spin off its ophthalmic indications to a US based public company, Denali Concrete Management Inc. (OTC BB: DCMG.OB).

According to the agreement, Can-Fite shall grant a sublicense for the CF101 clinical development in the ophthalmology field to an Israeli subsidiary fully owned by Denali Concrete Management Inc. ("Denali"). Upon conclusion of the transaction, Can-Fite will become the main shareholder of Denali. Concurrently with the aforesaid transactions, and as a condition for closing, an investment will be made in Denali of not less than US$5 Million. Denali will continue the clinical development of CF101 for the ophthalmic indications including Dry Eye Syndrome, Glaucoma and Uveitis.

Prof. Pnina Fishman, CEO of Can-Fite: "We are very pleased with the progress towards the conclusion of the ophthalmology spinoff, leading to the establishment of a company specializing in ophthalmology. We anticipate that this spinoff will boost the clinical development and future commercialization of CF101 in the ophthalmology field."

Source: Can-Fite BioPharma Ltd