Biodel/Albireo Limited To Combine; Focus On Liver Diseases
Zacks Investment Research | May 24, 2016 09:38PM ET
Biodel Inc. (NASDAQ:BIOD) announced that it has entered into a definitive share exchange agreement with privately held biopharmaceutical company, Albireo Limited, and its stockholders.
Under the terms of the agreement, Albireo stockholders will be able to exchange their shares for newly issued Biodel shares. On a pro forma basis, Albireo stockholders will own approximately 67% of the combined entity, while Biodel stockholders will own the remaining 33%, subject to certain adjustments based on net cash of Biodel and Albireo prior to closing.
Meanwhile, an association of existing investors of Albireo has agreed to invest an additional $10 million prior to the closing of the transaction in the third quarter of 2016.
Upon closing, Biodel will change its name to Albireo Pharma, Inc. and trade on the NASDAQ Capital Market under the ticker symbol “ALBO”. The combined company will focus on the development of novel bile acid modulators for the treatment of orphan pediatric liver diseases, and other liver and gastrointestinal diseases and disorders.
We note that Albireo is initially developing its lead candidate, A4250, for the treatment of progressive familial intrahepatic cholestasis (PFIC). It is evaluating A4250 in a phase II study on children with cholestatic liver disease. Data from the study are expected later this year. A4250 enjoys Orphan Drug designation in both the U.S. and the EU for PFIC and certain other cholestatic liver diseases.
Elobixibat is another candidate in Albireo’s portfolio, which is currently being evaluated in a phase III study in Japan for the treatment of chronic idiopathic constipation.
Currently, Biodel carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Bristol-Myers Squibb Company (NYSE:BMY) , ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) and Pfizer Inc. (NYSE:PFE) , each sporting a Zacks Rank #1 (Strong Buy).
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