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Novus to expand treatment options with Anelixis
Posted on Tuesday, 15 September 2020 13:04
Novus Therapeutics has agreed terms for a deal that will see it acquire US-based clinical stage biotechnology company Anelixis Therapeutics.
While no financial details were disclosed, the transaction will include a combination of the buyer’s common and preferred stock.
Concurrently, Novus has also entered a private investment in public equity (PIPE) deal with new and existing investors to raise around USD 108.00 million.
The backers, such as Cormorant Asset Management and Ecor1 Capital, will receive preferred stock at a price of about USD 500.00 per share and the transaction is due to close on 14th September 2020.
Following the PIPE offering, the proceeds will be used to fund Novus’ operations, including its phase 2 clinical trials of the antibody AT-1501.
Massachusetts-headquartered Anelixis focuses on developing immune modulatory drugs for neurodegenerative conditions, such as amyotrophic lateral sclerosis (ALS) and Alzheimer’s disease.
Its pipeline includes the antibody anti-CD40 Ligand, which could be used as a potential treatment for organ and cellular transplantation, autoimmune and neurodegenerative disorders.
Upon closing, the target’s founder, Steve Perrin, will join Novus’s board.
Perrin said: “The activation of CD40/CD40L signalling is critical to mediating antibody and cellular inflammatory response.
“We are developing antibodies to inhibit the activation of this pathway with the hope of offering new treatment modalities for people living with conditions such as autoimmune nephritis and ALS, or those requiring a potentially life-saving transplant.”
As a result of the deal, Novus will also gain access to Anelixis’ preclinical and phase 1 data.
Located in California, the buyer focuses on targeting the CD40 pathway to develop drugs for patients living with autoimmune and neurogenerative conditions, as well as those requiring an organ or cell-based transplant.
During the six months ended 30th June 2020, Novus generated operating expenses of USD 5.97 million, compared to USD 8.96 million in the corresponding period of 2019.
Within the same timeframe, the group posted a net loss of USD 10.76 million (H1 2019: USD 8.97 million).
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