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MRK Exercises Option For NGM Bio’s Investigational Insulin Sensitizer-NGM313
January 3rd, 2019 MRK exercised it’s option to license NGM313, a monoclonal antibody under investigation as a treatment for NASH and Type-2 diabetes. Upon exercising the option MRK gained exclusive worldwide rights to develop, manufacture, and commercialize NGM313, renamed MRK-3655, and other compounds that are related. In exchange for completing their proof-of-concept clinical study and the option conversion NGM received $20 million from MRK. NGM still holds the option to participate in up to 50% of the global costs of a phase 3 CX and a revenue sharing agreement. If NGM decides not to exercise their option they are still eligible to receive additional payments related to MRK-3655 development, milestone payments, and tiered royalties related to product sales.
Additionally, MRK received 5 new indication approvals in Japan for Keytruda. Among them are Advanced Non-Small Cell Lung Cancer (NSCLC), as Adjuvant Therapy for Melanoma, and in Advanced Microsatellite Instability-High (MSI-H) Tumors. For more information click here.
BREAKING NEWS: Bristol-Myers Squibb (NYSE: BMY) is to buy Celgene (Nasdaq: CELG) in a cash-stock transaction totaling $74 billion. Under the agreement CELG share holders receive 1.0 BMY share & $50 cash for each share of CELG. Shareholders of CELG will additionally receive one tradable Contingent Value Right (CVR) per share of Celgene. This entitles the shareholder to get payments for regulatory milestone achievements.
The resulting transaction will lead to the creation of a specialized focused Biopharma Company purposed to better serve patients with cancer, inflammatory and immunologic disease, and cardiovascular disease via innovative medicines and industry leading research.
Based on CELG’s previous closing price of $52.43 the transaction should yield a $102.43 per share of CELG plus the CVR described above. After the transaction has been completed BMY is expected to own 69% of CELG and CELG shareholders will retain ownership of the remaining 31%.
CELG share price is up 30% this morning on the news trading around $85. BMY is down 11% trading around $46.
Today January 3rd, 2019 Galectin Therapeutics (Nasdaq: GALT) filed a Form 8-K amending the “original 8-K” filed on December 20th, 2018. The original filing announced an extension of the companies $10 million credit line provided board chairmen Mr. Richard Uihlein through December 31st, 2019 and with a maturity date of December 31st, 2020.
The amendment grants Mr. Uihlein a warrant allowing him to exercise 1 million shares of common stock at $5 per share. In our opinion the credit line extension and this amendment reflect the continued support and faith by Mr. Uihlein in the future success of GALT. As many of us know GRMD-02 is a versatile molecule with loads of untapped potential in an array of disease areas including but not limited to: Fibrosis, cirrhosis, autoimmune disease, and oncology.