What's Going On With First Wave BioPharma Stock?
Portfolio Pulse from Erica Kollmann
First Wave BioPharma, Inc. (NASDAQ:FWBI) shares surged after the company announced a non-binding agreement to sell its niclosamide program for inflammatory bowel diseases, with a low seven-figure upfront payment, future milestones, and royalties. The deal is expected to close in the first half of 2024. Additionally, FWBI will acquire ImmunogenX in an all-stock transaction, focusing on advancing a GI pipeline with late-stage clinical assets, also expected to close in the first half of 2024. The company recently underwent a 1-for-20 reverse stock split.
January 03, 2024 | 8:21 pm
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First Wave BioPharma's stock price increased following announcements of a non-binding agreement to sell its niclosamide program and the acquisition of ImmunogenX. The company also executed a reverse stock split.
The positive stock price movement for FWBI is likely due to the announcement of the non-binding agreement to sell its niclosamide program, which includes upfront payment and potential future earnings through milestones and royalties. The acquisition of ImmunogenX indicates a strategic move to strengthen its clinical pipeline, which investors may view favorably. The reverse stock split could be seen as a move to improve the stock's marketability and compliance with exchange listing requirements.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100