The Adamis Pharmaceuticals Corp (NASDAQ: ADMP) stock price rallied 36.6% after announcing plans to merge its operations with DMK Pharmaceuticals to form a stronger company that can continue developing drugs targeting opioid use and other neuro-based diseases.
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The announcement saw Adamis Pharma shares spike higher, with over 3.52 million Adamis shares changing hands at writing. After the merger, the combined company will be led by Eboo Versi, the current CEO of DMK Pharmaceuticals. In addition, Eboo will assume the role of CEO and Chairman of the combined entity.
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The acquisition will give Adamis access to DMK’s cynical-stage programs, the library of about 750 small molecule neuropeptide analogues, and the ongoing government funding for its development programs.
Adamis is a speciality biopharmaceutical company focused on developing drugs that treat various illnesses, including respiratory and inflammatory diseases, opioid overdose and allergies.
On the other hand, DMK Pharmaceuticals is a private, clinical-stage biotechnology firm developing innovative and cutting-edge endorphin-inspired drugs designed to be novel treatments for opioid use disorder (OUD) and other neuro-based diseases.
The two firms have overlapping programs in the opinion use disorders segment, which led them to decide that the lead candidate to be pursued by the combined entity would be a clinical-stage therapeutic under development for the treatment of opioid use disorder.
David J. Marguglio, CEO of Adamis, stated: “Last fall, we initiated a process to explore strategic alternatives for the company with the goal of maximizing stockholder value. After engaging in a thorough process of exploring potential alternatives and transactions, we believe a merger with DMK is the best path forward for Adamis and the strategy that has the potential to deliver significant value to Adamis’ shareholders.
Adding:
“I believe by combining Adamis’ commercial products and development infrastructure with DMK’s clinical-stage programs and library of small molecules, under Dr Versi’s leadership, the new company will have the potential to develop multiple groundbreaking treatments and ultimately grow shareholder value.”
The merger will be effected via a reverse split of Adamis common stock at an agreed ratio.
*This is not investment advice.
The Adamis Pharma (ADMP) stock price.
The Adamis Pharma (ADMP) stock price rallied 36.58% to trade at $0.3599, from Monday’s closing price of $0.2635.
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