Novus Therapeutics (NVUS) Stock Flies On Acquisition News

Novus Therapeutics NVUS Stock News

Novus Therapeutics Inc (NASDAQ: NVUS) is running for the top in the market this morning, and for good reason. The company announced an acquisition, exciting investors. Here’s what’s happening.

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NVUS Stock Rockets On Acquisition News

In the press release, Novus Therapeutics announced that it has completed the acquisition of Anelixis Therapeutics. Analixis is a privately held clinical stage biotechnology company that’s currently developing a next generation anti-CD40 Ligand antibody as a potential treatment for ogran and cellular transplantation, autoimmune diseases, and neurodegenerative diseases.

Along with the acquisition of Anelixis, NVUS said that it entered into a definitive agreement surrounding the sale of non-voting convertible preferred stock in a private placement to a group of institutional accredited investors led by BVF Partners.

The company said that the private placement is expected to result in gross proceeds of around $108 million before deducting expenses. These funds will be used to fund the company’s operations, including the advancement of AT-1501 through Phase 2 clinical trials in renal transplantation, islet cell transplantation, autoimmune nephritis, and amyotrophic lateral sclerosis.

In a statement, Keith A. Katkin, Chairman of the Board at NVUS, had the following to offer:

We are excited about AT-1501 and the potential to develop and commercialize the next generation anti-CD40L antibody, a well-validated target with broad therapeutic possibilities. After exploring a range of strategic options to maximize shareholder value, we believe this acquisition represents the greatest value creation opportunity for Novus stockholders, and we are confident that we have the management and scientific leadership team to fully realize this opportunity for patients in need of new treatment options.

Final Thoughts

The acquisition that was completed is great news for NVUS and its investors. It brings a valuable asset to the table and several catalysts to look forward to. As a result, the stock is worth your attention.

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