Acer Therapeutics Inc. (“Acer”), an ultra orphan drug development company in which Bukwang has been investing since 2015, announced that it has entered into a definitive merger agreement with Opexa Therapeutics, Inc.(“Opexa”)
After the announcement on July 3rd, the share price of Opexa Therapeutics, Inc has soared by 77%.
After the merger, the stockholders of Acer are estimated to own approximately 88.8% and Opexa shareholders expected own the remaining 11.2%. Once the merger is closed during the third quarter of 2017, Opexa will change its name into Acer Therapeutics Inc., and it will be listed in NASDAQ Capital Market.
Bukwang has invested 4M USD in Acer and currently holds approximately 13% ownership prior to the merger.
As Acer will be listed in NASDAQ, Bukwang expects to have capital gains from the transaction.
Acer’s CEO Chris Schelling and one of Opexa’s management has mentioned that Acer will continue to develop and commercialize therapies for the treatment of patients with serious rare diseases. It was also mentioned that NDA submission for EDSIVO, the lead product for the treatment of vEDS, with the FDA may be in the first half of 2018, and EDSIVO could be on the market within the next two years. Also, as a public company, Acer looks forward to engage with a broader pools of investors.
Acer-001(MSUD) and EDSIVO, which are currently under development by Acer, has received orphan designation from U.S. FDA. Acer-001 is currently being developed as the treatment for Maple Syrup Urine Disease(MSUD) and Urea Cycle Disorder(UCD).
A representative from Bukwang said, “Currently, Bukwang is investing in bio-ventures and other global companies, in effort to find out startups at early stage. Also, Bukwang will continue to expand its overseas business.”