The pharmaceutical industry is experiencing massive accounts of mergers, and surprisingly big entities are seeking to partner with startups. In the most recent account, Vital Therapies Inc. (NASDAQ:VTL) has penned a definitive agreement with Immunic Therapeutics. The two have joined forces to make it easy to tap into each other’s expertise.
Resulting from the agreement, Vital Therapies will acquire all of the outstanding shares in the privately-held German firm. The latter will in return issue shares of Vital Therapies in an all-stock transaction. Among those who will benefit from the proposed transaction are the Immunic stockholders. This is because at the point the transaction closes the new company will operate under the name Immunic, Inc.
Will the transaction generate substantial stockholder’s value?
More often than not, any merger brings on board specialized influence, which benefits either the two or one of the entities. In this case, Immunic Therapeutics is taking the more significant share of the benefits. According to Immunic’s chief executive, Daniel Vitt, the proposed transaction will be transformative for the company.
He says, “Our objective has always been to develop new and better options for patients with debilitating diseases, and with this transaction and the compelling data from our programs, we believe that we are well positioned to deliver on this vision.”
Surprisingly, there is an investor syndicate already lined up and ready to invest in the new company a tune of EUR 26 million. The move is likely to attract many other investors seeking to be part of the pharmaceutical industry. The financing will go a long way into advancing Immunic’s pharmaceutical product candidates.
Immunic targets the development of best-in-class therapies
Chronic inflammatory and autoimmune diseases are becoming very common in the present day. Immunic intends to invest more in the development of novel therapies, which can treat these diseases. Its lead program, IMU-838 is currently under assessment in a phase 2 trial following successful testing in phase 1 clinical trials. IMU-838 is a next-generation selective immune modulator, and it is available orally.
The company also has IMU-935, which is in its preclinical development stage and expected to begin clinical phase 1 trial in mid-2019.