Rexahn Pharmaceuticals (REXN) Stock Rockets On Merger News

Rexahn Pharmaceuticals REXN Stock News

Rexahn Pharmaceuticals, Inc. (NASDAQ: REXN) is making a run for the top in the market this morning, trading on gains of around 35% before the bell. The gains come after the company announced that it has entered into a definitive merger agreement. Here’s what’s going on:

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REXN Stock Flies On Merger Agreement

In the press release, Rexahn Pharmaceuticals said that it has entered into a definitive merger agreement with Ocuphire Pharma. Under the terms of the agreement, Ocuphire will merge with a wholly-owned subsidiary of REXN in an all-stock transaction.

Upon the close of the merger, the subsidiary will change its name to Ocuphire Pharma. Importantly, the combined company is expected to trade on the Nasdaq Capital Market under the ticker symbol “OCUP.”

In the release, the company said that the combined company will focus on the advancement of a pipeline of opthalmic drug candidates. The deal also comes with a large investment commitment.

In fact, a group of institutional healthcare and other accredited investors, as well as Ocuphire directors and executives, have committed to invest $21.15 million ina  private placement that will close immediately prior to the closing of the merger.

In the release, REXN explained that Ocuphire has built a strong pipeline of candidates with demonstrated clinical activity that target high value markets. The company’s lead candidate, Nyxol Eye Drops, is a once-daily eye drop formulation of phentolamine mesylate designed to reduce pupil diameter and improve visual acuity.

In a statement, Douglas J. Swirsk, President and CEO at REXN, had the following to offer:

After completing a comprehensive review of multiple strategic alternatives, we determined that the proposed merger with Ocuphire would provide the best opportunity for Rexahn shareholders moving forward. The decision by our management and board to choose Ocuphire to be our merger partner will allow our shareholders to participate in a dynamic company with a robust pipeline, backed by a sizeable commitment from institutional investors to continue the development of multiple drug candidates in a growing ophthalmic market.

The above statement was followed up by Mina Sooch, President and CEO at Ocuphire. Here’s what she had to offer:

This merger is transformative for Ocuphire as we look to advance our late-clinical stage small molecule ophthalmic pipeline, with multiple Phase 3 and Phase 2 clinical data catalysts expected in 2021. We believe the target product profiles of our two product candidates, Nyxol and APX3330, collectively studied in 18 clinical trials and each with large market potentials, creates an opportunity for Ocuphire to become a leading ophthalmic company focused on improving vision and clarity.

This News Is Huge

The news released by Rexahn Pharmaceuticals this morning is massive. Think about it. Not only is the company going to merge with another, absorbing a list of promising candidates, it is going to bring in tens of millions of dollars in the process.

All in all, this merger opens the door to a potential entry into multiple high value markets. That’s great news. This, combined with the financial backing that will come as part of this deal makes REXN stock one that’s hard to ignore.

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