Israeli phage therapy company BiomX (NYSE: PHGE) has announced a merger with Adaptive Phage Therapeutics (APT). The merged company is also raising $50 million in a private placement. Existing shareholders in BiomX will hold 55% of the merged company.
Following the announcement, BiomX's share price rose 150% on Wall Street to give a market cap of $27 million, still below its IPO market cap.
BiomX has lost 90% of its market cap since its SPAC merger
BiomX has been trading on the NYSE since 2019, when it became one of the first Israeli companies to complete a SPAC merger. Biomx also listed for trading on the Tel Aviv Stock Exchange (TASE) in 2020 but then delisted in 2022, after losing most of its value. Since its SPAC merger, BiomX has lost 90% of its value.
BiomX is based on a very interesting technology that was first developed at the Weizmann Institute of Science, and combines the most advanced scientific capabilities in two areas. The company uses AI to compare bacteria cocktails in the gut or on the skin, to identify the mixtures of bacteria in healthcare and disease. The company also uses technology of phages (viruses that attack bacteria) to make specific changes in the mix of bacteria, thus improving the condition of the disease.
Despite the thrilling science, a trial conducted for acne treatment failed to achieve clear and clinically relevant results. Today the company's lead product is designed to treat bacterial infections in patients with genetic lung disease cystic fibrosis. The product is nearing Phase IIb clinical trials, after an initial trial showed good results in a small group of patients. Results of the larger trial are expected in the third quarter of 2025.
APT's technology also uses phages, in its case, to treat antibiotic resistant infections in diabetic sores. Results of a Phase II trial for this product are due in early 2025.
BiomX's management headed by CEO Jonathan Solomon will continue to lead the merged company and some of APT's management will join the merged company's management.
Investors in the $50 million private placement include Deerfield Management, OrbiMed, Nanthal Capital and the Cystic Fibrosis Foundation.
Published by Globes, Israel business news - en.globes.co.il - on March 6, 2024.
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