Biodel Inc. announced that it has entered into a definitive share exchange agreement with privately held biopharmaceutical company, Albireo Limited, and its stockholders.
Under the terms of the agreement, Albireo stockholders will be able to exchange their shares for newly issued Biodel shares. On a pro forma basis, Albireo stockholders will own approximately 67% of the combined entity, while Biodel stockholders will own the remaining 33%, subject to certain adjustments based on net cash of Biodel and Albireo prior to closing.
Meanwhile, an association of existing investors of Albireo has agreed to invest an additional $10 million prior to the closing of the transaction in the third quarter of 2016.
Upon closing, Biodel will change its name to Albireo Pharma, Inc. and trade on the NASDAQ Capital Market under the ticker symbol “ALBO”. The combined company will focus on the development of novel bile acid modulators for the treatment of orphan pediatric liver diseases, and other liver and gastrointestinal diseases and disorders.
We note that Albireo is initially developing its lead candidate, A4250, for the treatment of progressive familial intrahepatic cholestasis (PFIC). It is evaluating A4250 in a phase II study on children with cholestatic liver disease. Data from the study are expected later this year. A4250 enjoys Orphan Drug designation in both the U.S. and the EU for PFIC and certain other cholestatic liver diseases.
Elobixibat is another candidate in Albireo’s portfolio, which is currently being evaluated in a phase III study in Japan for the treatment of chronic idiopathic constipation.
Currently, Biodel carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Bristol-Myers Squibb Company (BMY - Free Report) , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and Pfizer Inc. (PFE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Biodel Inc. announced that it has entered into a definitive share exchange agreement with privately held biopharmaceutical company, Albireo Limited, and its stockholders.
Under the terms of the agreement, Albireo stockholders will be able to exchange their shares for newly issued Biodel shares. On a pro forma basis, Albireo stockholders will own approximately 67% of the combined entity, while Biodel stockholders will own the remaining 33%, subject to certain adjustments based on net cash of Biodel and Albireo prior to closing.
Meanwhile, an association of existing investors of Albireo has agreed to invest an additional $10 million prior to the closing of the transaction in the third quarter of 2016.
Upon closing, Biodel will change its name to Albireo Pharma, Inc. and trade on the NASDAQ Capital Market under the ticker symbol “ALBO”. The combined company will focus on the development of novel bile acid modulators for the treatment of orphan pediatric liver diseases, and other liver and gastrointestinal diseases and disorders.
We note that Albireo is initially developing its lead candidate, A4250, for the treatment of progressive familial intrahepatic cholestasis (PFIC). It is evaluating A4250 in a phase II study on children with cholestatic liver disease. Data from the study are expected later this year. A4250 enjoys Orphan Drug designation in both the U.S. and the EU for PFIC and certain other cholestatic liver diseases.
Elobixibat is another candidate in Albireo’s portfolio, which is currently being evaluated in a phase III study in Japan for the treatment of chronic idiopathic constipation.
Currently, Biodel carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Bristol-Myers Squibb Company (BMY - Free Report) , ANI Pharmaceuticals, Inc. (ANIP - Free Report) and Pfizer Inc. (PFE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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