RepliCel Life Sciences Inc (TSXV:RP)
RepliCel is a regenerative medicine company developing autologous cell therapies that address diseases caused by a deficit of healthy cells required for normal healing and function.
The all-stock deal for U.S.-based CBD company Reliva is valued at about $40M, with an earn-out clause for up to $45M.
The transaction is expected to close next month.
The purchase is seen being immediately accretive to Aurora (NYSE:ACB) owners. Reliva generated positive EBITDA in the one year ended in March, and is debt free.
Reliva’s management team will remain in place, with current chief Miguel Martin becoming president of Aurora USA.
ACB +19% after hours.
Inovio Pharmaceuticals (NASDAQ:INO) jumps 24% premarket on robust volume in reaction to positive preclinical data on INO-4800, its COVID-19 DNA vaccine candidate. The results were just published in Nature Communications.
Studies showed that vaccination with INO-4800, which targets the SARS-CoV-2 Spike protein, generated strong binding and neutralizing antibody responses as well as high-level T cell responses in mice and guinea pigs. The authors demonstrated virus neutralizing activity with three separate neutralizing tests.
The company says it will use all of its preclinical data and results from Phase 1 studies to support the rapid advancement of the candidate into a randomized Phase 2/3 trial this summer.
Aldeyra Therapeutics (NASDAQ:ALDX) is up 34% premarket on light volume ahead of its conference call this morning at 8:00 am ET to discuss its pipeline of COVID-19 candidates. Highlights:
ADX-1612: The inhibitor of a chaperone protein called HSP90 demonstrated nanomolar potency similar or greater than Gilead Sciences’ (NASDAQ:GILD) remdesivir in an in vitro model. The company says it potentially leads to the inhibition of proteins associated with viral replication so it may enhance the activity of other antiviral drugs in COVID-19. It plans to file an IND next quarter. It is also being tested for the treatment of ovarian cancer.
ADX-629: An IND is on tap for June for the RASP inhibitor. In a preclinical cytokine storm model, it showed broad reductions across a range of pro-inflammatory cytokines, while upregulating anti-inflammatory interleukin 10 (IL-10). It is also being evaluated for psoriasis and atopic asthma.
In an interview on Yahoo Finance, Sorrento Therapeutics(NASDAQ:SRNE) founder and CEO Dr. Henry Ji said that he expects to get FDA sign-off to start clinical trials on its self-proclaimed neutralizing antibody “cure” for COVID-19, STI-1499, in the next 2-3 months.
“There are a lot of investors suspecting this is another pump and dump, which is typical, which is normal, but we don’t believe that’s the case,” Ji said.
When asked about a possible capital raise, he stated that the company has “a lot of tools” to finance its efforts.
Ji’s interview hits on the same day as Hindenburg Research released a loud short report on Sorrento. Shares had been down nearly 20% earlier this morning, but are now higher by 5%.
“I suggest extreme skepticism regarding any claims made by Sorrento (NASDAQ:SRNE),” one former employee tells Hindenburg Research. “I would never in my life have put out a press release where I say we have a cure,” says a former executive.
Hindenburg claims the company was nearly out of cash and facing solvency concerns ahead of its COVID-19 cure announcement.
Hindenburg: “We believe that Sorrento’s actions are manipulative at the worst possible time and simply amount to an attempt to shamelessly profiteer off the pandemic.”
Shares are down 15% this morning, and now off about 50% from the high hit on Monday.
Hindenburg has been critical on other Covid-19 names recently, like Opko Health (NASDAQ:OPK) and Co-Diagnostics (NASDAQ:CODX).
