Make that two biotech reverse mergers in one day

Natasha Giordano, PLx

Natasha Giordano, PLx

Hot on the heels of a reverse merger between Tokai and Otic, Dipexium $DPRX announced that it will be turning over the shell of what it has left to Houston-based PLx Pharma.

Two months ago Dipexium reported the latest in a string of catastrophic trial failures for the year. Their antibiotic cream failed two late-stage studies, eviscerating their business model and leaving few alternatives to pick from. Its shares dropped 85%.

That set the stage for PLx to take a shortcut to the public markets as it ramps up a marketing campaign for Aspertec. 

The wave of biotech IPOs in 2013-2015 set up a number of stock-smashing catalysts in 2016. And with IPOs harder to pull off now, these reverse mergers are back in vogue. Dipexium’s shares shot up 78% on the move.

Natasha Giordano, President and Chief Executive Officer of PLx Pharma, said:

This merger will provide PLx Pharma with the initial resources necessary to advance our contemplated development efforts for Aspertec and begin the critical pre-commercialization activities necessary to prepare the market for this important cardiovascular product.

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