Once the deal completes, BioCryst’s current stockholders will have 51.6% of the new company, with Idera’s owners holding the other 48.4%.
Several important catalysts in 2018
It is expected that the group will have US$243mln of net cash, with opportunities to add further non-dilutive capital to fund clinical developments.
Together the companies will have two Phase 3 and two Phase 2 drug candidates, and it was highlighted that there would be several important catalysts in 2018.
"Both of our companies have aspired to become successful providers of therapeutics for patients suffering from rare life-threatening diseases,” said Vincent Milano, Idera chief executive and future chief executive of the new company.
“Both share a culture that puts patients first and keeps their interests at the very core of what we do, and how we do it."
"By merging our unique talents, experiences and assets, we instantly strengthen our ability to become a significant force for patients suffering from a broad range of rare diseases. We will also gain operational synergies and strengthen our financial position."
New company to grow faster
Jon Stonehouse, BioCryst chief executive officer, meanwhile, added: “Bringing these two companies together accelerates the strategic initiatives of both organizations and immediately forms a substantial and differentiated biotech company serving patients in the rare disease community."
"Combining our respective pipelines, infrastructures and financial resources should enable the new company to grow faster, deliver for patients more rapidly and ultimately create sustainable shareholder value well beyond what either would achieve separately."
In premarket deals, Idera shares dropped 8.6% to trade at 2.55p while BioCryst was up 3.6% to 5.59p.