Kalytera Therapeutics Inc (OTCMKTS:KALTF) has today announced that it has made major headway into the acquisition of Stero Biotechs. This was an undertaking that involved the business guru signing a Letter of Intent (“LOI”), and seemingly there is a lot of good that comes with the new move.
The nature of the solutions provided
Stero Biotechs has been operating as a private business whose main area of focus has been the development of Cannabidiol. This company’s product has been playing a critical role in ensuring wellness when combined with steroids.
Experts in the health and wellness segment outline that Stero’s business strategy was well-calculated. According to them, the business targeted cutting down on the dosages of the steroids by a significant margin.
It was about helping needy patients deal with the wide-ranging safety issues associated with the use of steroids by providing a better functioning alternative. There are high chances the deal might be closed anytime soon.
However, that is tied to whether or not the shareholders approve the deal in question. That is not the only thing because there will also be other conditions that Kalytera Therapeutics will need to fulfill.
Why the acquisition deal?
Kalytera Therapeutics has its reasons for moving into the deal. However, one notable point is that both businesses focus on the development of CBD pharmaceutical products. The only difference that exists is the point that Stero’s CBD programs are more objective and elaborate as compared to those of Kalytera. Stero’s programs have always been known to target bigger commercial markets, and the same thing can’t be said for Kalytera’s programs.
A good indicator of this is what each of the businesses has achieved so far. Kalytera hasn’t been holding back when it comes to the issuance of patents targeted at dealing with the graft versus host disease (“GVHD”).On the other hand, Stero has been known for its efforts in the issuance of patents that pay focus on the use of CBD for the steroid. Its activities have helped in staging a strong fight against almost 130 different diseases and disorders. Analysts say that it is representative of almost a multi-billion dollar commercial opportunity.