First Wave BioPharma Enters Non-binding Term Sheet To Sell Niclosamide Program For Inflammatory Bowel Diseases To An Undisclosed Biopharmaceutical Company, Includes Low Seven-figure Upfront Payment And Economics Related To Future Milestones And Royalties
Portfolio Pulse from Benzinga Newsdesk
First Wave BioPharma has entered a non-binding term sheet to sell its Niclosamide program for inflammatory bowel diseases to an undisclosed biopharmaceutical company. The deal includes a low seven-figure upfront payment and future economic benefits from milestones and royalties. This move will allow First Wave BioPharma to concentrate on its late-stage clinical programs: Capeserod, Adrulipase, and Latiglutenase, following a potential business combination with ImmunogenX.
December 27, 2023 | 11:04 am
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First Wave BioPharma's decision to sell its Niclosamide program may provide immediate financial benefits and allow the company to allocate resources to its late-stage clinical programs, potentially enhancing its long-term pipeline value.
The sale of the Niclosamide program is directly related to FWBI and is likely to have a positive short-term impact on the company's stock price. The upfront payment provides immediate financial benefit, and the focus on late-stage clinical programs could be viewed positively by investors as it may increase the likelihood of successful product development and future revenue streams. The confidence in this analysis is high due to the clear strategic move by FWBI to streamline its focus on potentially more lucrative assets.
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