Galmed Pharmaceuticals jumps after rival acquired

drug development

The Israeli fatty liver disease treatment developer was boosted by the $81.4 million acquisition of Nimbus.

Israeli drug developer Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD) saw its share price jumped 47% on Nasdaq yesterday after rinal company Nimbus was acquired by Gilead Biotech for $78 million. After the rise (including after hours trading) Galmed's share price had risen to $7.50, giving a market cap of $81.4 million.

Galmed is developing a treatment for fatty liver disease a common ailment in the Western world that can lead to NASH (Non Alcoholic Steatohepatitis) liver inflammation. There are currently no treatments available although several companies are developing drugs for this and the first to this huge market will enjoy a financial windfall.

Galmed's treatment is further developed than Nimbus's although another rival Intercept is at a more advanced stage of clinical trials than Galmed, which is in advanced efficacvy trials on 240 patients with results expected in 2017.

Galmed's raised $28 million in its Nasdaq IPO at the start of 2014 at a company value of $137 million, when it only had several hundred thousand dollars in cash.

Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

drug development
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