Bioblast Pharma Ltd (NASDAQ: ORPN) is climbing in the market this morning, and for good reason. The company announced the sale of an asset, exciting investors who are pushing the stock upward this morning. Today, we’ll talk about:
- The asset sale;
- what we’re seeing from ORPN stock as a result; and
- what we’ll be watching for ahead.
ORPN Announces Asset Sale
As mentioned above, Bioplast Pharma is having a great day in the market today after announcing an asset sale. In a press release issued early this morning, the company announced the sale of its Trehalose clinical development programs.
On e of the programs is the company’s advanced Phase 2 clinical program of Trehalose. In this program, the company is assessing the treatment as an option for patients with Oculoharyngeal Muscular Dystrophy.
In the release, ORPN said that the asset was sold to Seelos Therapeutics for a price of $3.5 million. The first $1.5 million is apyable upon closing. The other $2.0 million will be paid one year from the anniversary of the closing of the sale.
The company said that it may be entitled to additional milestone payments. These payments come to $17 million and will be made upon the completion of the clinical study and approval of an NDA by the FDA. The company will also be entiteld to receive royalties on sales.
In a statement, Dalia Megiddo MD, Interim CEO at OPRN, had the following to offer:
We have great faith in the efficacy of Trehalose for the treatment of several rare diseases. We are confident that Seelos will continue to develop the clinical programs skilfully for the benefit of the patients as well as for Bioblast’s and Seelos’ shareholders.
The above statement was followed up by Raj Mehra, CEO at Seelos. Here’s what he had to say.
We view Trehalose as a promising therapy for many patients suffering from rare diseases caused by accumulation of proteins and other large molecules in their cells. We look forward to further developing this therapy for the benefit of patients suffering from rare diseases.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Bioblast Pharma, the news proved to be positive. Not only did the company make a sale that will provide it with immediate revenue, the deal also comes with the potential to provide strong revenue down the road.
So, it comes as no surprise that excited investors are pushing the stock up in the market this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:43), OPRN is trading at $1.88 per share after a gain of $0.73 per share or 63.48% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OPRN. In particular, we’re interested in following how the company uses the funds from this transaction as well as the development of its pipeline. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!