Neglected on Wall Street, little Stealth Bio finds an affluent chum with $30M in cash and high hopes for their PhIII drug
Stealth BioTherapeutics never had much luck at gaining the attention of Wall Street $MITO while struggling to advance its late-stage drug for mitochondrial disease. But it turns out Alexion was watching closely.
Thursday morning the bigger rare disease biotech agreed to front $30 million —half for stock — to pick out a ringside seat as Stealth makes its way through the final stages of a Phase III with elamipretide. The drug’s been touted as a potential first-in-class therapy, but investors never bought in, watching Stealth’s shares drift steadily lower after pricing the IPO at $12.
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