Histogenics Corp (NASDAQ: HSGX) is having an incredibly strong start to the trading session this morning, following up on the incredible day that the stock had in the market yesterday. The gains came after the company announced a new partnership. Today, we’ll talk about:
- The partnership;
- what we’re seeing from HSGX stock as a result; and
- what we’ll be watching for ahead.
HSGX Announces Partnership News
As mentioned above, Histogenics is having a great start to the trading session, following up on yesterday’s partnership fuelled gains. The gains started after the company issued a press release yesterday morning announcing the partnership.
In the press release, HSGX said that it entered into a definitive merger agreement with Ocugen. Under the terms of the merger agreement, the transaction will result in a combined publicly-traded, clinical-stage biopharmaceutical company by the name of Ocugen.
At the end of the transaction, Ocugen shareholders will own approximately 90% of the company, leaving the remaining 10% for HSGX shareholders. In a statement, Shankar Musunuri, Ph.D., M.B.A., Chiarman, CEO and Co-Founder at Ocugen, had the following to offer:
Since Ocugen’s founding, we have sought to develop innovative therapies to treat rare and underserved eye diseases through a combination of therapeutic approaches that utilize small molecules, biologics, and gene therapies.
We have developed a broad pipeline which includes OCU300, an orphan drug candidate for ocular graft versus host disease, and OCU310 for dry eye disease; our modifier gene therapy platform and OCU400, a gene augmentation therapy for patients with inherited retinal diseases caused by mutations in the NR2E3 gene, which recently received orphan drug designation from the FDA. We’ve also made pre-clinical progress toward our retinal disease programs which includes novel biologic therapies for wet- age-related macular degeneration, diabetic macular edema and diabetic retinopathy, as well as for retinitis pigmentosa.
The above statement was followed up by Adam Gridley, President at HSGX. Here’s what he had to say:
This transaction with Ocugen reflects the continued commitment of our management team and Board of Directors to deliver value to stockholders and make a difference in patients’ lives.
Following a thorough review of strategic alternatives for Histogenics and the NeoCart program, we have determined that a merger with Ocugen will enable Histogenics investors to participate in Ocugen’s broader pipeline of ocular disease and gene therapy opportunities, including several late-stage clinical candidates, and a robust preclinical platform. In addition, we plan to continue to evaluate opportunities to realize additional value from the discontinued NeoCart program over the coming weeks.
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. In the case of Histogenics, the news proved to be overwhelmingly positive.
After all, the new partnership will bring strength to the company. Of course, this led to excitement among investors who sent the stock rocketing yesterday and continue to do the same today.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:35), HSGX is trading at $0.23 per share after a gain of $0.057 per share or 32.95% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HSGX. In particular, we’re interested in following the story surrounding the company’s merger and the value that the transaction brings to investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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