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EyeGate Pharma Stock Surges After Panoptes Pharma Acquisition

Shares of EyeGate Pharmaceuticals (NASDAQ: EYEG) are rallying premarket on Monday after the company revealed it will acquire Panoptes Pharma, a privately-held clinical-stage biotech company.

EyeGate said the acquisition will transform its pipeline with the addition of PP-001, a “next-generation, non-steroidal, immuno-modulatory, small-molecule inhibitor of Dihydroorotate Dehydrogenase (DHODH) with potential best-in-class picomolar potency.”

EyeGate will pay $4 million for Panoptes, which will consist of EyeGate common stock, preferred stock and cash. A further $1.5 million in EyeGate common stock will be issued after 18 months, subject to certain conditions.

The transaction also includes two cash or share earn-out provisions, each for an additional payment of up to $4,750,000 contingent upon 1) the enrollment and randomisation of a first patient into the first Phase III pivotal study of any Panoptes ophthalmic product with the FDA, and 2) approval of a New Drug Application by the FDA for any Panoptes ophthalmic product.

“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, CEO of EyeGate.

The news has resulted in a rally for EyeGate’s share price. It is currently up 85.87% premarket at $6.60 following Friday’s close at $3.57.

Sam Boughedda
Sam Boughedda
Team Member

Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples. 

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