Critical Therapeutics to be sold

Critical Therapeutics Inc. has agreed to be sold to a North Carolina biotechnology company in an all stock deal.

The transaction means Massachusetts will lose the headquarters of a promising life sciences company.

Cornerstone BioPharma Holdings Inc. of Cary, N.C., a privately held company, will buy Lexington, Mass.-based Critical (Nasdaq: CRTX) in a stock-for-stock transaction.

Content Continues Below

Once the sale closes at the end of 2008, the combined company will keep the Cornerstone name and its North Carolina headquarters. Craig Collard, Cornerstone's president and CEO, willassume the same role at the combined company.

With the acquisition, Cornerstone will gain drugs in the Critical roster such as Zyflo, CR, an asthma treatment approved to treat adults and children over age 12.

Once the deal is complete, the combined company will also review its product pipeline and out-license, sell or spin off other assets.

The future of Critical's Lexington employees remains unknown.

Critical CEO Frank Thomas resigned last month, citing personal reasons. But the company announced last fall it would pursue strategic options including a possible sale or merger.