miRagen Therapeutics (MGEN) Stock Rockets on Acquisition News

miRagen MGEN Stock News

miRagen Therapeutics Inc (NASDAQ: MGEN) is screaming for the top in the market this morning, and for good reason. The company announced acquisition news that’s exciting investors. Here’s what’s going on:

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MGEN Stock Is Headed Up on Acquisition News

In the press release, miRagen said that it completed the acquisition of Viridian Therapeutics. Viridian is a privately held biotech company. The company is currently focused on advancing new treatments for patients with diseases that are underserved.

As part of the acquisition, MGEN said that it entered into a definitive agreement surrounding the sale of Series A non-voting convertible preferred stock. The sale will take place in a private placement and the shares will be purchased by a group of institutional accredited investors.

In the release, the company said that it is expecting to generate about $91 million in gross proceeds from the private placement. This money will be used to advance clinical studies of VRDN-001, a clinical-stage insulin-like growth factor-1 receptor monoclonal antibody. The treatment is currently being developed as a potential option for patients with thyroid eye disease.

In a statement, Jeffrey S. Hatfield, Chairman of the Board of Directors at MGEN, had the following to offer:

After a thorough evaluation of strategic alternatives, the Board of Directors of miRagen believes this acquisition represents the highest-potential value creation opportunity for miRagen’s stockholders. My sincere thanks and appreciation to our Board members and management team, both past and present, along with our investors for their support and commitment. We are excited by the potential for VRDN-001 to become a meaningful treatment option for patients living with TED.

This Is Big News

The news released by miRagen Therapeutics this morning proved to be overwhelmingly positive. With the acquisition, the company is now the owner of the VRDN-001 asset. Moreover, as a result of the private placement, the company’s balance sheet will be greatly improved.

It’s also worth mentioning that patients currently have few treatment options for thyroid eye disease, a condition that causes painful bulging of the eyes. Should the company bring VRDN-001 to market, the treatment could instantly become a blockbuster, finally offering these patients an effective option for treating their condition.

Moreover, with relatively high short interest as of late, the news seems to have triggered a short squeeze. As a result, there’s no telling just how high the stock will run today.

All in all, following the acquisition MGEN stock is one that should not be ignored.

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