2024-04-03 11:38:38 ET
Arca Biopharma Inc (NASDAQ: ABIO) more than doubled on Wednesday after announcing a merger agreement with Oruka Therapeutics.
Oruka CEO comments on Arca Biopharma stock deal
The combined company following completion of the all-stock transaction will operate as Oruka Therapeutics and trade under “ORKA” on Nasdaq.
Oruka – a biotech firm that focuses on novel biologics for skin diseases has already secured private financing worth $275 million to fund operations through 2027. Lawrence Klein – its chief executive said in a press release today:
This merger and significant financing is expected to provide resources to build out our operational capabilities and propel our programs into clinical development with focus and efficiency.
Arca Biopharma stock is now up close to 150% versus its year-to-date low.
What’s in it for Oruka Therapeutics?
Oruka Therapeutics expects this merger to help advance its ORKA-001 and ORKA-002 therapies that require less often dosing but offer better efficacy against chronic skin conditions like plaque psoriasis.
The biotechnology company expects to begin clinical trials of these antibodies in 2025. Its CEO Klein also said on Wednesday:
We believe that our lead programs, engineered by the world-class team at Paragon, could meaningfully advance the standard of care in psoriasis and related diseases.
In February, reported $5.34 million net loss for 2023 versus $9.93 million a year ago. Heading into today, Wall Street had a “buy” rating on Acra Biopharma shares.
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