So far on Wednesday, the real market movers have been the news on acquisitions, and PlasmaTech Biopharmaceuticals Inc. (NASDAQ: PTBI) is playing its part. 24/7 Wall St. has already covered a biotech acquisition and another in the tech sector as well.
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Also Wednesday morning, PlasmaTech Bio announced that it has entered into a definitive agreement to acquire Abeona Therapeutics.
Under the terms of the agreement, PlasmaTech Bio will issue to Abeona members a total of 3.98 million common shares on closing of the transaction, and up to an additional $9 million in performance milestones, in common stock or cash, at the company’s option.
The board of directors of PlasmaTech Bio and the managers of Abeona have unanimously approved the transaction. The transaction is expected to close in the second quarter of 2015.
Abeona Therapeutics is developing gene therapies for patients with rare genetic diseases, with initial therapies being developed for patients with Sanfilippo syndromes (MPS III). The company was formed in early 2013 to help focus the search for a cure for Sanfilippo syndrome.
Currently PlasmaTech Bio develops plasma-derived therapies for cancer patients. It has six products in its pipeline, four of which could potentially yield over $1 billion in sales when they hit the market.
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Steven H. Rouhandeh, PlasmaTech Bio’s executive chairman, commented on the acquisition:
We believe this acquisition represents an exciting cornerstone of our strategy to build a world class cell and gene therapy company focused on rare diseases. Abeona’s programs in MPS IIIB & IIIA address a compelling unmet medical need with breakthrough technology and fundamental core competencies to develop products and accelerate value for patients and shareholders. This acquisition will accelerate development and internationalization of both clinical programs due to increased access to capital and organizational capabilities. Importantly, the Abeona operating and scientific teams will remain intact and we believe Tim Miller’s unique blend of experience and capabilities makes him ideal to move the company forward towards our goal of becoming a leader in rare diseases. Additionally, Abeona recently closed on $4.8 million in financing from leading Sanfilippo Foundations worldwide, and have an additional $1 million commitment for manufacturing.
Prior to this news, George Soros reported a greater than 5% stake in PlasmaTech Bio in April.
The stock made its initial jump Tuesday, closing up about 109% at $5.97. Shares of PlasmaTech Bio were up about 70% at $10.18 on Wednesday afternoon. This is one of those companies where it is tough to make heads or tails of the data.
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