Pharmos Corp., a Woodbridge, N.J., developer of drugs that offer marijuana-like analgesic relief, has averted a painful proxy battle and litigation that could have unseated its CEO and founder.

After having met some demands from its largest single shareholder, Lloyd Miller III, and giving him a seat on the board, Pharmos is going ahead with a $29.7 million acquisition of privately held Vela Pharmaceuticals Inc. of Ewing, N.J.