Make that two biotech reverse mergers in one day
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.