FIXX - Homology Medicines slumps after merger deal with Q32 Bio

2023-11-16 12:26:59 ET

Gene therapy company Homology Medicines ( NASDAQ: FIXX ) lost ~47% on Thursday after Q32 Bio, a privately held biotech based in Waltham, Massachusetts, agreed to merge with it in an all-stock transaction.

The combined entity will focus on Q32 Bio's experimental drugs for autoimmune and inflammatory diseases and is expected to trade on the Nasdaq under the ticker symbol "QTTB."

It will be named Q32 Bio and operate from Waltham, Massachusetts, under the leadership of the current Q32 Bio management team led by its CEO, Jodie Morrison, and Chief Scientific Officer, Shelia Violette.

In connection with the merger, Q32 Bio has entered into an agreement to raise $42M through a private placement, in a bid to boost the combined company's cash balance to ~$115M.

After the transactions, legacy Homology Medicines ( FIXX ) stockholders are set to own ~25% of the combined entity, while pre-merger Q32 Bio shareholders, including those taking part in the private placement, will own the rest.

FIXX investors will also be eligible for a contingent value right (CVR) related to sales of Homology Medicines' pre-merger assets. The merger transaction is expected to close in Q1 2024.

Concurrently, Q32 Bio said it will regain full development and commercial rights to a fully human anti-IL-7R? antibody called bempikibart (formerly known as ADX-914) from Amgen ( NASDAQ: AMGN ).

Two Phase 2 trials are currently underway for bempikibart in atopic dermatitis and alopecia areata, with topline data expected in H2 2024.

More on Amgen, Homology Medicines, etc.

• Amgen: Buy In Stable Fundamental And Technical Price Growth
• Amgen Is Still A Hold, But Should Be On Your Watchlist
• 3.2%-Yielding Amgen's Realistic Path To >11% Annual Returns
• Sen. Elizabeth Warren tells FTC she remains concerned about Amgen's Horizon deal
• Amgen cleared in U.S. to market biosimilar to J&J’s Stelara

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