- Acasti Pharma Inc (NASDAQ: ACST) has agreed to acquire privately-held Grace Therapeutics Inc in an all-stock transaction. After the consummation of the deal, Acasti would own approximately 55% of the combined company on a pro forma basis, and Grace would own the remaining 45%.
- It is anticipated that the cash at closing of about $64 million will be principally used to pursue the clinical development of the first two assets through Phase 3.
- Grace's drug development programs:
- GTX-104 is an aqueous nanoparticle formulation of water-insoluble nimodipine under development for subarachnoid hemorrhage (SAH).
- PK Bridging study results expected Q1 of FY2022; Phase 3 safety study expected to start enrollment in Q3 of FY2022.
- GTX-102 an oral mucosal spray formulation of betamethasone for Ataxia-Telangiectasia.
- PK study results are expected by the second half of next year. Phase 3 trial to study to start in the first half of 2023.
- GTX-101 a topical bio-adhesive film-forming spray of bupivacaine for post-herpetic neuralgia.
- Phase 1 results expected 2H'22; start of Phase 2 expected 2H'22.
- Jan D'Alvise will lead the company entity as president and chief executive officer, and the corporation will continue to maintain its corporate headquarters in Laval, Quebec, Canada.
- All Grace employees will transition to Acasti, and they will continue to maintain an R&D laboratory and commercial presence in North Brunswick, New Jersey.
- The new Board of Directors will be composed of 4 representatives from Acasti and 3 from Grace.
- The Proposed Transaction is expected to close in calendar Q3 of 2021
- Acasti will take steps to regain compliance with Nasdaq's minimum bid price requirements in connection with the Proposed Transaction, and if required, would implement a share consolidation.
- Oppenheimer & Co. is acting as Acasti's financial advisor. William Blair & Company, LLC is serving as financial advisor to Grace.
- Price Action: ACST shares are up 18.5% at $0.48 during the market trading hours on the last check Friday.
Acasti Pharma To Acquire Grace Therapeutics: Highlights