Gemphire Therapeutics (GEMP) Rockets On Merger News

Gemphire Therapeutics GEMP Stock News

Gemphire Therapeutics Inc (NASDAQ: GEMP) is running for the top in the market this morning, trading on gains of more than 47%. The gains come after the company announced that it would be part of a merger, exciting investors who are pushing the stock for the top. Here’s what’s happening:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

GEMP Stock Is Flying On Merger News

In a press release issued by the company late yesterday, Gemphire Therapeutics announced that it had entered into a definitive agreement with NeuroBo Pharmaceuticals. Under the terms of the agreement, NeuroBo will merge with a wholly-owned subsidiary of GEMP in an all-stock transaction.

Once the merger is complete, the company said that it would be changing its name to NeuroBo Pharmaceuticals, Inc. and plans to change its ticker symbol to NRBO.

The newly-merged company will have a focus on the continued development of NeuroBo’s clinical-stage candidates for the treatment of multiple neurodegenerative diseases. The company’s clinical development programs include:

  • NB-01 – NB-01 is a candidate being developed for the treatment of diabetic neuropathic pain. The lead drug candidate is in Phase 3 clinical development as a first line option.
  • NB-01 – NeuroBo is also actively developing NB-01. The treatment is being assessed as a potential option for the treatment of neurodegenerative diseases associated with the pathological dysfunction of the amyloid-beta and tau proteins in the human brain. These conditions are inclusive of the high value indication, Alzheimer’s disease.

Management Commentary

In a statement, John L. Brooks III, President and CEO at NeuroBo Pharmaceuticals, had the following to offer:

We are excited about the opportunities and resources that will become available to NeuroBo and its therapeutic pipeline as a result of the merger. As we move towards developing both NB-01 and NB-02, we believe that having shares publicly traded on Nasdaq will provide greater opportunity to advance our therapeutic pipeline and corporate strategy.

The above statement was followed up by Dr. Steve Gullans, President and CEO at GEMP. Here’s what he had to say:

NeuroBo represents an ideal merger partner for us. NeuroBo has a compelling Phase 3 program with NB-01 in diabetic neuropathic pain and a strong team to advance its pipeline. We evaluated numerous potential merger partners and recognized that NeuroBo has a solid base of investors and the potential to deliver significant value based on its pipeline assets.

The NeuroBo merger complements our partnership with Beijing SL Pharmaceutical Co., and together, these relationships will enable us to continue to advance gemcabene toward a Food and Drug Administration (FDA) partial clinical hold decision and potentially lead to a beneficial outcome for Gemphire shareholders who will hold contingent value rights.

This Is A Big Deal

At the end of the day, this announcement is huge for Gemphire and its investors. First and foremost, through the transaction, the company will gain ownership of a late-stage clinical candidate as well as a candidate targeting a high value indication that could prove to be a blockbuster.

With a late-stage clinical development program currently underway, we can expect to see multiple catalysts out of the company ahead. Moreover, a potential NDA submission with the FDA and subsequent approval could propel GEMP to the next level!

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Be The Next To Miss The News

Join our FREE mailing list below to receive actionable alerts!

Subscribe Today!

* indicates required

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.