M&A

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.


The best place to read Endpoints News? In your inbox.

Comprehensive daily news report for those who discover, develop, and market drugs. Join 33,300+ biopharma pros who read Endpoints News by email every day.

Free Subscription

Clinical Scientist
Molecular Templates Jersey City, NJ
Manufacturing Associate - GMP Upstream
Molecular Templates Austin, TX
Director, Regulatory Affairs
Molecular Templates Jersey City, NJ
GMP Supervisor - Downstream
Molecular Templates Austin, TX
Manufacturing Associate - GMP Downstream
Molecular Templates Austin, TX

Visit Endpoints Careers ->