Ampliphi Biosciences Corp (NYSEAMERICAN: APHB) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a merger, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The merger news;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to APHB ahead.
APHB Announces Merger News
As mentioned above, AmpliPhi Biosciences is having an incredibly strong start to the trading session in the pre-market hours this morning after the company announced merger news. In a press release issued less than an hour ago, the company said that it has entered into a definitive merger agreement.
Under the terms of the agreement, a subsidiary of the company will merge with C3J in an all-stock transaction. Once the merger is complete, the combined company will have a diverse clinical stage pipeline with a natural phage candidate targeting bacteremia ready for Phase 1/2 clinical studies. The company will also have a synthetic phage candidate that targets respiratory infections and is expected to enter Phase 1 development by the end of the year. Also, the company will have an extensive natural phage library and the capacity to develop sythetic phage against a wide range of microbial agents.
In the release, APHB said that C3J shareholders have committed to invest $10 million in the combined company. This financing will help to fund the further development of the new entity’s preclinical and clinical programs. This transaction is expected to close immediately upon the merger.
In a statement, Todd R. Patrick, President and CEO at C3J, had the following to offer:
We are delighted with the prospect of consummating this merger with AmpliPhi… We believe the depth of knowledge that AmpliPhi has developed through human dosing of natural phage therapeutics complements C3J’s capabilities as a leader in the development of synthetic phage through its proprietary phage engineering platform. Synthetic phage offers enhanced antimicrobial properties that improve pharmacology, limit the emergence of phage-resistant bacteria and create potential opportunities for IP protection for best-in-class therapeutics. I believe this merger will create a leading company in the development of targeted bacteriophage therapeutics at a time when key regulatory bodies, including the U.S. Food and Drug Administration (FDA) and the World Health Organization (WHO) recognize the imminent threat posed by increased antimicrobial resistance.
The above statement was followed up by Paul Grint, CEO at APHB. Here’s what he had to offer:
We are committed to advancing this new class of therapeutics, and this merger with C3J will combine complementary assets and capabilities that we believe are in the best long-term interests of each company’s shareholders while addressing the significant unmet needs of patients struggling with multi-drug resistant bacterial infections.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to AmpliPhi Biosciences, the news proved to be overwhelmingly positive. After all, the merger will bring several new assets to the table. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:55), APHB is trading at $0.32 per share after a gain of $0.092 per share or 40.00% thus far today.
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What We’ll Be Watching For Ahad
Moving forward, the iWatch Markets team will continue to keep a close eye on APHB. In particular, we’re interested in following the story surrounding the merger as it is still subject to shareholder approval, customary closing conditions and other conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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