Clinical-stage pharma firms Ayala Pharmaceuticals, Advaxis sign merger deal
Ayala Pharmaceuticals, a Nasdaq-listed clinical-stage oncology company, has entered into a merger deal with New Jersey-based biotech company Advaxis.
Based in Delaware, Ayala Pharmaceuticals is engaged in developing small molecule therapeutics for aggressive cancers and rare tumors. On the other hand, Advaxis is focused on developing immunotherapies based on a technology that makes use of engineered Listeria monocytogenes.
The combined company formed through the Ayala Pharmaceuticals, Advaxis merger deal will mainly focus on the former’s lead asset AL102 for the treatment of desmoid tumors and the latter’s prostate cancer drug candidate ADXS-504.
AL102 is currently being studied in the ongoing phase 2/3 RINGSIDE clinical trial, while ADXS-504, which is an off-the-shelf neoantigen drug candidate, is being evaluated in a phase 1 clinical trial.
Commenting on the Ayala Pharmaceuticals, Advaxis merger deal, Roni Mamluk — Ayala Pharmaceuticals President and CEO said: “We are pleased to announce the proposed merger with Advaxis, which is expected to provide our pipeline and AL102 with additional financial resources as well as additional infrastructure in the U.S.
“The two companies have a shared mission to develop innovative therapies to improve the lives of patients with cancer and I believe we have found a good partner to advance our pipeline and create value for our stakeholders.”
Upon closing of this latest pharma merger deal, stockholders of Ayala Pharmaceuticals will own a stake of around 62.5% of the combined company, while the remaining stake of 37.5% will be held by Advaxis stockholders.
Kenneth A. Berlin — Advaxis President and CEO of Advaxis said: “Advaxis took a thorough approach in our quest to find the right partner with the right products. This merger is expected to enhance Advaxis’s portfolio of clinical assets, with Ayala’s proprietary gamma secretase inhibitors that are being developed as targeted therapies for rare and aggressive tumors.”
The closing of the deal is subject to approval by the shareholders of Ayala Pharmaceuticals and other conditions.
Following the merger, Ayala Pharmaceuticals will be delisted from The Nasdaq Global Market and the combined biotech company is likely to commence trading on the OTCQX.