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.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

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.