UPDATED: First Wave BioPharma To Acquire ImmunogenX To Bolster Gastrointestinal-Focused Pipeline
Portfolio Pulse from Vandana Singh
First Wave BioPharma Inc (FWBI) plans to acquire ImmunogenX in an all-stock transaction to enhance its GI disease pipeline. The deal is expected to close in H1 2024. FWBI's CEO will remain, with ImmunogenX's CEO becoming CMO. FWBI anticipates non-dilutive funding from a strategic pharma company for latiglutenase's U.S. rights and investor commitments for development post-closing. Latiglutenase, for celiac disease, is set for Phase 3 trials in H2 2024. FWBI also licensed Capeserod from Sanofi SA (SNY) for GI uses and enacted a 1-for-20 reverse stock split.
December 18, 2023 | 11:00 am
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NEUTRAL IMPACT
Sanofi SA's licensing of Capeserod to FWBI for GI indications could benefit SNY through potential future royalties or milestone payments.
While the licensing deal with FWBI could be beneficial for SNY, the financial impact is not immediately clear and will depend on the success of the drug's development and commercialization.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
FWBI's acquisition of ImmunogenX could strengthen its GI pipeline and lead to non-dilutive funding and investor commitments for latiglutenase's development. The reverse stock split may affect stock liquidity and market perception.
The acquisition news is likely to be viewed positively as it expands FWBI's pipeline and includes strategic funding plans. The reverse stock split could be seen as a move to improve stock marketability, which might influence the stock price positively in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100