Advaxis (ADXS) Stock Is Climbing On Merger News

Advaxis, Inc. (NASDAQ: ADXS) is screaming for the top in the market this morning, and for good reason. The company announced news that it will merge with a privately held pharmaceutical development company by the name of Biosight. Here’s what’s happening:

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ADXS Announces Merger

In the press release, Advaxis said that it will merge with Biosight, a privately held pharmaceutical company that’s developing therapies for hematological malignancies and disorders. 

The two companies have entered into a definitive agreement that will end with Biosight becoming the majority holders of the combined company following the transaction. 

In the release, ADXS said that the merger will create a public company that will prioritize its clinical advancement and commercialization of Biosight’s lead product, aspactarabine. Upon the completion of the merger, the combined company will have about $50 million in cash on hand. 

Once the merger is complete, which is expected to occur in the second half of the year, Advaxis will change its name to Biosight Therapeutics and is expected to trade on the Nasdaq under the ticker, BSTX. 

Moreover, once the merger is complete, ADXS shareholders will own about 25% of the combined company with Biosight shareholders owning about 75% of the combined company.

Management Commentary

In a statement, Kenneth A. Berlin, President, CEO and interim CFO at ADXS, had the following to offer:

After an extensive and thorough review of strategic and potentially transformative options for Advaxis, we are very pleased to announce a proposed merger with Biosight. We believe the combined company’s strong and diversified oncology pipeline with late stage and early stage assets, near-term milestones, seasoned leadership team and focus on both hematological malignancies and solid tumors have the potential to provide transformative benefits to patients while also providing value to our stockholders.

The above statement was followed up by Dr. Ruth Ben Yakar, CEO at Biosight. Here’s what Dr. Yakar had to offer:

The proposed merger with Advaxis is a unique opportunity for Biosight to build a leading public company in oncology, with a diversified clinical pipeline in both hematological malignancies and solid tumors. The combined company will have the demonstrated expertise and strong balance sheet to advance its lead programs towards multiple anticipated milestones over the next 12 to 18 months. I would like to express my deepest appreciation to the wonderful Biosight team, including Dr. Liat Flaishon and Dr. Shoshi Tessler who lead our R&D activities, and Dr. Stela Gengrinovitch, the founder of the company. The excellent work and dedication of the entire Biosight team enabled the significant achievements. I would also like to thank our Board of Directors and Shareholders for their support over the years.

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The Bottom Line

All in all, this is great news for Advaxis and its shareholders. Through the merger, the company will say goodbye to its financial blues. Moreover, ADXS shareholders will gain exposure to exciting new candidates, setting the stage for growth ahead. All in all, the merger seems to be a win, win, for all! 

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