Angion Biomedica Corp. ANGN announced that it has entered into a definitive merger agreement with the privately-held biotech, Elicio Therapeutics, wherein the latter will merge with a wholly-owned subsidiary of Angion in an all-stock transaction.
Following the successful completion of the merger, the combined company will continue to operate under the name of Elicio Therapeutics and is likely to trade on the Nasdaq stock exchange under the ticker symbol (“ELTX”). The headquarters of the company will be in Boston, MA.
Shares of Angion were down 30.9% on Tuesday following the announcement of the news. The stock has plunged 68.8% in the past year compared with the industry’s decline of 8.8%.
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The combined company’s lead pipeline candidate will be Elicio Therapeutics’ ELI-002, a therapeutic cancer vaccine targeting mKRAS-driven tumors developed with Elicio’s proprietary lymph node-targeting AMP technology. The company will focus on developing immunotherapies based on this AMP technology.
ELI-002 is currently being evaluated in the phase I AMPLIFY-201 study for treating patients who have mKRAS-driven tumors, including pancreatic ductal adenocarcinoma and colorectal cancer. An additional phase Ib/II study on ELI-002 is expected to begin in the second half of the ongoing year.
Per the merger agreement, Elicio stockholders will receive newly issued shares of Angion common stock with the existing stockholders of Angion likely owning around 34.5% while Elicio stockholders will own 65.5% of the newly combined company.
The transaction is expected to close in the second quarter of 2023, subject to customary closing conditions.
Post the merger, the executive team of Elicio, headed by current chief executive officer Robert Connelly, will run the new combined company.
In July 2022, Angion began a process to explore strategic options to enhance shareholder value. As a part of this process, the likely strategic options include a merger, reverse merger, other business combinations, sale of assets, licensing, or other strategic transactions involving Angion.
The company decided to discontinue the development of its pipeline candidate ANG-3070 for all indications as well as stopped most of the other development activities.
Zacks Rank & Other Stocks to Consider
Angion currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the biotech sector are Syndax Pharmaceuticals, Inc. SNDX, Celularity Inc. CELU and Arcus Biosciences, Inc. RCUS, all sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss per share estimates for Syndax Pharmaceuticals have narrowed 6.5% for 2023 in the past 60 days.
Earnings of Syndax Pharmaceuticals surpassed estimates in three of the trailing four quarters and met the same on the other occasion. SNDX witnessed an earnings surprise of 95.39% on average.
Loss per share estimates for Celularity have narrowed 17.3% for 2023 in the past 60 days.
Earnings of Celularity surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. CELU witnessed an earnings surprise of 51.01% on average.
Loss per share estimates for Arcus Biosciences have narrowed 5.9% for 2023 in the past 60 days.
Earnings of Arcus Biosciences surpassed estimates in two of the trailing four quarters, met the same once and missed on the other occasion. RCUS witnessed an earnings surprise of 56.74% on average.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Angion Biomedica Corp. (ANGN) : Free Stock Analysis Report
Syndax Pharmaceuticals, Inc. (SNDX) : Free Stock Analysis Report
Arcus Biosciences, Inc. (RCUS) : Free Stock Analysis Report
Celularity, Inc. (CELU) : Free Stock Analysis Report
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