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Macrocure Stock Up on Merger Deal with Leap Therapeutics
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Shares of Macrocure Ltd. shot up 66.1% after the company announced that it has signed a definitive merger agreement with privately held company, Leap Therapeutics, Inc.
After the completion of the deal, Leap Therapeutics will become a publicly traded company, with Macrocure operating as its wholly owned subsidiary. Leap Therapeutics will apply to have the combined company’s common shares listed on the NASDAQ.
As per the terms of the agreement, Macrocure’s shareholders will exchange their shares for newly issued shares of Leap Therapeutics. In addition, some of Leap Therapeutics’ current investors have agreed to invest an extra $10 million at the closing of the deal. Upon the closing of the transaction, Macrocure shareholders will collectively own approximately 31.8% of the combined entity, while Leap Therapeutics equity holders will own approximately 68.2%.
The combined entity is expected to have a minimum of $30 million in cash to finance future operations. Leap Therapeutics’ current shareholders will enjoy the right to a royalty, under certain circumstances, based on future sales.
The strategic merger agreement with Leap Therapeutics will provide significant potential for Macrocure. It will get access to Leap Therapeutics’ pipeline candidates – DKN-01 and TRX518 – that are designed to provide new and valuable treatment options for patients suffering from aggressive cancers.
On the other hand, Leap Therapeutics will obtain sufficient capital to develop its pipeline candidates. The company expects to achieve substantial clinical milestones during 2016 and 2017. It also expects to initiate randomized studies on its lead candidate, DKN-01, and report data from a repeat-dose study on TRX518.
We note that DKN-01 is currently being evaluated for esophageal cancer and cholangiocarcinoma. The candidate demonstrated clinical activity, as monotherapy, in patients with non-small cell lung cancer and, in combination with paclitaxel, in patients with esophageal cancer. Meanwhile, additional data from a study on DKN-01, being evaluated in combination with Eli Lilly and Company’s (LLY - Free Report) Gemzar (gemcitabine) and cisplatin, in patients with cholangiocarcinoma, will be presented at an annual meeting in Oct 2016.
Macrocure currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Anika Therapeutics Inc. (ANIK - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
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Macrocure Stock Up on Merger Deal with Leap Therapeutics
Shares of Macrocure Ltd. shot up 66.1% after the company announced that it has signed a definitive merger agreement with privately held company, Leap Therapeutics, Inc.
After the completion of the deal, Leap Therapeutics will become a publicly traded company, with Macrocure operating as its wholly owned subsidiary. Leap Therapeutics will apply to have the combined company’s common shares listed on the NASDAQ.
As per the terms of the agreement, Macrocure’s shareholders will exchange their shares for newly issued shares of Leap Therapeutics. In addition, some of Leap Therapeutics’ current investors have agreed to invest an extra $10 million at the closing of the deal. Upon the closing of the transaction, Macrocure shareholders will collectively own approximately 31.8% of the combined entity, while Leap Therapeutics equity holders will own approximately 68.2%.
The combined entity is expected to have a minimum of $30 million in cash to finance future operations. Leap Therapeutics’ current shareholders will enjoy the right to a royalty, under certain circumstances, based on future sales.
MACROCURE LTD Price
MACROCURE LTD Price | MACROCURE LTD Quote
The strategic merger agreement with Leap Therapeutics will provide significant potential for Macrocure. It will get access to Leap Therapeutics’ pipeline candidates – DKN-01 and TRX518 – that are designed to provide new and valuable treatment options for patients suffering from aggressive cancers.
On the other hand, Leap Therapeutics will obtain sufficient capital to develop its pipeline candidates. The company expects to achieve substantial clinical milestones during 2016 and 2017. It also expects to initiate randomized studies on its lead candidate, DKN-01, and report data from a repeat-dose study on TRX518.
We note that DKN-01 is currently being evaluated for esophageal cancer and cholangiocarcinoma. The candidate demonstrated clinical activity, as monotherapy, in patients with non-small cell lung cancer and, in combination with paclitaxel, in patients with esophageal cancer. Meanwhile, additional data from a study on DKN-01, being evaluated in combination with Eli Lilly and Company’s (LLY - Free Report) Gemzar (gemcitabine) and cisplatin, in patients with cholangiocarcinoma, will be presented at an annual meeting in Oct 2016.
Macrocure currently has a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the health care sector include Anika Therapeutics Inc. (ANIK - Free Report) and ANI Pharmaceuticals, Inc. (ANIP - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>