Arsanis Inc (NASDAQ: ASNS) is having yet another incredible start to the trading session this morning, following up on the recent gains that we’ve seen from the stock. So, what’s the deal? Well, the company recently announced a merger agreement that will expand its pipeline and provide further value for shareholders. Today, we’ll talk about:
- The merger;
- why it’s such a big deal;
- what we’re seeing from ASNS stock as a result; and
- what we’ll be watching for ahead.
ASNS Announces Merger
As mentioned above, Arsanis has been seeing pretty strong days in the market as of late after announcing a merger. Recently, the company said it would merge with X4 Pharmaceuticlas, a privately held company.
X4 is a clinical-stage biopharmaceutical company that is focused on the development of tretments for rare diseases and cancer. Most notably is X4P-001, X4’s lead candidate for the treatment of rare diseases of the immune system and rare cancers.
Once the transaction is closed, X4 Pharmaceuticals shareholders will own approximately 70% of the combined company with ASNS shareholders owning approximately 30%.
In the release, the company said that the transaction has been approved by the Boards of Directors of both companies. However, the transaction is subject to the approval of stockholders of each company as well as the satisfaction or waiver of customary closing conditions.
Why This Is Such A Big Deal
At the end of the day, the merger between Arsanis and X4 Pharmaceuticals is great news for all parties involved. Through the acquisition, X4 will make its way to the public stage while shareholders of ASNS will bring in a key new asset. After all, XP-001 is not just any asset. The asset has been granted Orphan Drug Designation by the FDA and has shown incredible results in studies thus far. So, there’s no reason that either side of this coin shouldn’t be excited.
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. In the case of Arsanis, the news was overwhelmingly positive. After all, through the merger, the company’s investors will gain a stake in a treatment that is showing promise and has been granted Orphan Drug Designation. So, it comes as no surprise to see that excited investors continue to push the stock for the top. As is normally the case our partners at Trade Ideas were the first to alert us to the gains. Currently (10:47), ASNS is trading at $4.10 per share after a gain of $0.39 per share or 10.51% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets Team will continue to keep a close eye on ASNS. In particular, we’re interested in following the transaction that was recently announced. While the agreement has been approved by the Boards on both sides of the equation, it is still subject to shareholder approval and customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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