new-recommended-broker-banner new-recommended-broker-banner
Practice Stock Trading Your capital is at risk

Aerpio Pharmaceuticals Stock Surges On Aadi Bioscience Merger Agreement

Updated: 17 May 2021

Shares of biopharmaceutical company Aerpio Pharmaceuticals (NASDAQ: ARPO) are rallying premarket on Monday after the company announced it has entered into a merger agreement with Aadi Bioscience.

The merger will see Aerpio change its name to Aadi Bioscience, Inc, with the combined company listed on the Nasdaq and focusing on advancing Aadi’s lead product candidate, FYARRO.

To support the merger, Aerpio has entered into subscription agreements to raise $155 million in a Private Investment in Public Equity (PIPE) financing led by Acuta Capital Partners and KVP Capital.

The company said that proceeds from the financing will be used for the commercialisation of FYARRO in advanced malignant PEComa and a planned tumour-agnostic registrational trial in solid tumours harbouring inactivating alterations.

The combined company cash at closing will fund operations through to 2024. 

Caley Castelein, a board member of Aerpio and the proposed chairman of the combined company, stated, “Aerpio’s board of directors diligently undertook a comprehensive strategic review and has concluded that the proposed transaction with Aadi is in the best interest of our shareholders. We believe Aadi’s late-stage development program may offer significant medical benefit to PEComa patients and important potential for patients with tumors harboring TSC1 or TSC2 inactivating alterations.”

Premarket, Aerpio's stock price is up 18.10% at $1.37 per share.

Should You Invest in Aerpio Pharmaceuticals Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .