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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