Trxade Health closes business combination with Scienture in $103Mln deal

Trxade Health, Inc. (NASDAQ: MEDS), a leading health service IT company, has announced the closing of its business combination with New York-based pharmaceutical company Scienture, Inc. in a $103-million transaction. Trxade has acquired all of Scienture’s assets in exchange for shares of its stock, in a combination of common stock and non-voting convertible preferred stock. As per the merger agreement, Trxade will change its name to Scienture Holdings, Inc., and the combined entity is intended to continue as a NASDAQ-listed company.

The combined company will be focused on bringing to market innovative branded, specialty pharmaceutical products that enhance the standard of care while adding value to patients, caregivers, and the healthcare system. Scienture has assets in development across therapeutic areas and indications, catering to different market segments.

Boards Approve Deal

The boards of both companies have approved the business combination. Trxade’s current chairman and CEO Suren Ajjarapu will continue to serve as chairman and CEO of the combined company. The current members of the board of directors of Trxade will continue to serve as directors of the combined company, with the addition of two members designated by Scienture.

“Our mission at Scienture is in developing unique specialty product concepts and solutions that bring enhanced value to patients, caregivers, and healthcare systems. Our assets in development are across therapeutics areas, indications and cater to different market segments. We are committed to serving patients, physicians, and other healthcare stakeholders to attain better health outcomes,” said Shankar Hariharan, CEO of Scienture.

Trxade stockholders will continue to own around 83.34% of the combined company’s voting securities until the non-voting convertible preferred stock received by the Scienture stockholders is converted into Trxade’s common stock.