Shares of EyeGate Pharmaceuticals, Inc. (EYEG) are surging more than 75% Monday morning after the company announced the acquisition of Panoptes Pharma, a privately held clinical-stage biotech company focused on developing a novel proprietary small molecule for the treatment of severe eye diseases.
With this acquisition, PP-001, a next-generation, non-steroidal, immuno-modulatory, small molecule inhibitor of Dihydroorotate Dehydrogenase (DHODH) with potential best-in-class picomolar potency, gets added to EyeGate’s pipeline.
Panoptes has achieved major clinical milestones and has shown that PP-001 is efficacious and safe as an intravitreal injection (PaniJect) in non-infectious posterior segment uveitis patients.
Under the terms of the agreement, Panoptes will become a wholly owned subsidiary of EyeGate.
The consideration from EyeGate is $4 million in EyeGate common stock, EyeGate preferred stock and cash.
After 18 months, an additional $1.5 million will be issued in EyeGate preferred stock, subject to adjustments for post-closing working capital or indemnification obligations.
The deal also includes $4.75 million in cash or shares contingent upon Panoptes achieving certain clinical milestones.
“The acquisition of Panoptes propels the EyeGate pipeline forward to include a de-risked clinical-stage candidate with broad potential across a diverse range of ocular, autoimmune and neurological indications,” said Stephen From, Chief Executive Officer of EyeGate.
EYEG, currently at $6.32, has been trading in the range of $3.20- $12.89 in the last one year.
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