A biotechnology company using selective tranlsation regulation inhibitors to treat cancer is going public in a SPAC deal.
The SPAC Deal: eFFECTOR Therapeutics will merge with Locust Walk Acquisition Corp LWAC in a deal bringing a next generation oncology company public. The deal will value eFFECTOR at an enterprise value of $419 million.
A PIPE of $60 million is part of the SPAC merger and includes an investment from Pfizer Inc's PFE venture capital arm Pfizer Ventures.
Locust Walk Acquisition raised $175 million in its offering.
The deal is expected to close in the third quarter of 2021. The new company will trade as "EFTR" on the Nasdaq. After the merger, the company expects to have over $200 million in cash.
About eFFECTOR: eFFECTOR Therapeutics is focused on selective translation regulation inhibitors to treat cancer.
“This milestone is the beginning of a significant new chapter in eFFECTOR’s history, as we build on our strong scientific foundation as leaders in the development of selective translation regular inhibitors as a new class of therapies for cancer,” eFFECTOR CEO Dr. Steve Worland said.
eFFECTOR’s targeted translation regulation could have the potential to address multiple drivers of cancer, according to LWAC CEO Chris Ehrlich.
The company is targeting a therapeutic approach that can “inhibit the production of key disease-driving proteins, which tumors have hijacked” and preserve normal cell function.
eFFECTOR has a global partnership with Pfizer for the development of inhibitors of eIF4E.
The company has also announced plans to evaluate lead candidate zotatifin as a potential antiviral therapy for patients with mild to moderate COVID-19.
eFFECTOR's Growth Outlook: The SPAC merger will provide eFFECTOR with capital to advance their pipeline through multiple clinical milestones.
“We’re entering into this transaction to accelerate eFFECTOR’s growth with the goal of delivering a new class of medicines to help drive improved health outcomes for people with cancer,” Worland said.
An upcoming catalyst could come in the form of topline data from a Phase 2b KICKSTART trial of lead product candidate tomivorsertib in combination with pembrolizumab — Merck's MRK 0.06% Keytruda — for the treatment of metastatic non-small cell lung cancer. The study is open for enrollment.
The company said it will use capital to initiate several Phase 2a trials in the second half of 2021 and expand tomivosertib and zotatifin into additional indications.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.