Why First Wave BioPharma Shares Are Skyrocketing Today
Portfolio Pulse from Nabaparna Bhattacharya
First Wave BioPharma, Inc. (FWBI) shares surged after announcing a non-binding term sheet to sell its Niclosamide program for IBD treatment to an undisclosed biopharmaceutical company. The deal includes a low seven-figure upfront payment, future milestones, and royalties. This allows FWBI to concentrate on its late-stage clinical programs, including those licensed from Sanofi (SNY). The transaction is expected to close in the first half of 2024, and FWBI shares rose 143% premarket.
December 27, 2023 | 1:40 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
First Wave BioPharma's stock price skyrocketed following the announcement of a potential sale of its Niclosamide program, which will provide non-dilutive capital and allow focus on other clinical programs.
The surge in FWBI's stock price is a direct result of the announced term sheet for the sale of its Niclosamide program. The deal is expected to provide non-dilutive capital and allow the company to focus on its late-stage clinical programs, which is perceived positively by investors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Sanofi's partnership with First Wave BioPharma for the Capeserod program is mentioned as part of FWBI's focus on late-stage clinical programs post-sale of the Niclosamide program.
While Sanofi is mentioned in relation to its licensing agreement with FWBI for the Capeserod program, the news is primarily about FWBI's sale of the Niclosamide program. The impact on SNY's stock is likely to be neutral in the short term as the main focus is on FWBI.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30