Crushed by a tri­al fail­ure, Tokai hands the reins — and the stock list­ing — to Ot­ic

Last Au­gust, Tokai be­came the lat­est in a long string of pub­lic biotechs to hit a brick wall run­ning at full speed. The late-stage fail­ure of its can­cer drug galeterone ef­fec­tive­ly shred­ded its stock price and its busi­ness plan, forc­ing the com­pa­ny to rapid­ly ax staffers and start look­ing for strate­gic al­ter­na­tives in the face of an ex­tinc­tion-lev­el event.

To­day, the in­vestors at Ot­ic Phar­ma took over the shell and ex­e­cut­ed a quick short­cut to a Nas­daq list­ing. Tokai, with its mar­ket cap set at about $22 mil­lion, saw its shares $TKAI jump 57%. Its in­vestors will wind up with about 40% of the new com­pa­ny, with Ot­ic in charge.

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