First Wave BioPharma To Acquire ImmunogenX In All-stock Transaction

(RTTNews) - Biopharmaceutical company First Wave BioPharma, Inc. (FWBI) announced Monday that the company has signed a non-binding term sheet to acquire biotherapeutics company ImmunogenX in an all-stock transaction.

The combined company will focus on advancing a GI pipeline comprised of multiple late-stage clinical assets, including latiglutenase and capeserod, which First Wave BioPharma recently in-licensed from Sanofi.

Following consummation of the transaction, First Wave BioPharma will continue to trade on Nasdaq under the ticker symbol "FWBI".

The transaction, which has been approved by the Boards of Directors of both companies, is subject to the negotiation and execution of definitive documentation, approval of the stockholders of both First Wave BioPharma and ImmunogenX and other customary closing conditions and is expected to close in the first half of 2024.

Following the closing, James Sapirstein will continue to serve as Chairman and Chief Executive Officer of First Wave BioPharma with Jack Syage, Ph.D., Chief Executive Officer and Co-Founder of ImmunogenX, assuming the role of President and Chief Operating Officer.

First Wave BioPharma anticipates a significant non-dilutive financial investment from a strategic global pharmaceutical company for commercial rights to latiglutenase in the U.S., in addition to financing commitments from several institutional investors to fund development, will be completed post-closing.

Latiglutenase is an orally administered mixture of two minimally systemically absorbed gluten-specific recombinant proteases being developed as an oral biotherapeutic for celiac disease. The initiation of the Phase 3 trials is expected in the second half of 2024.