Histogenics (NASDAQ:HSGX) stock went gangbusters on Monday as the company has reportedly inked a deal with another business in the industry.
Pennsylvania-based Ocugen is a developer of gene therapies and other biologics designed to treat rare eye diseases, and the company has agreed to a reverse merger with struggling Massachusetts-based business Histogenics. Ocugen was founded by Pfizer veteran Shankar Musunuri and University of Colorado professor Uday Kompella.
The move will see Histogenics shareholders collectively hold about 10% of the new, combined company, which will include only Ocugen’s lean team. However, before the former company’s executives depart from the business, they will try to sell NeoCart, which is its regenerative treatment designed to treat knee cartilages.
The program was dropped by Histogenics in December as the Food and Drug Administration asked to see more data before accepting a BLA for review. Meanwhile, Ocugen’s last financing round was reportedly a $7.5 million Series B closed in 2017, which added to its $6 million in Series A cash.
Ocugen makes its bread and butter from drugs that arose from two platforms that were licensed from harvard’s Schepens Eye Research Institute of Massachusetts Eye and Ear. One of these formulates therapies known as a nanoemulsion, which is reportedly more durable and effective than your run-of-the-mill eye drops, while the other is geared to deliver nuclear hormone receptor that goes into the retina.
HSGX stock is up about 56% on Monday, while gaining another 9.3% after the bell.