DARA Bioscences, a privately held development-stage pharmaceutical company, announced that they have entered into a definitive agreement to merge with Point Therapeutics (POTP).

Per this agreement, DARA will merge into one wholly owned subsidiary of Point Therapeutics. This agreement also specified DARA stockholders will hold 96.4% of Point’s outstanding shares of common stock, and Point will change its name to DARA BioSciences, Inc after the share exchange goes into effect.

DARA and Point’s research is focused on Type 2 diabetes, neuropathic pain, dermatologic disorders, and oncology. DARA has recently signed an agreement with Bayer Pharmaceuticals to be granted use of patents and compounds for metabolic purposes.

Richard A. Franco, Sr., DARA’s President and Chief Executive Officer, stated, “All parties involved believe this to be a logical and productive course of action given the potential synergies of combining Point and DARA. We believe this transaction provides an exciting opportunity for the stockholders of both companies to realize value and liquidity from this combination.”

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