Value-Added Acquisition Clears the Runway for Miragen Therapeutics

With so many traders focused on Covid-19 vaccine candidate developers, let’s not ignore other high-need clinical areas. A prime example would be Miragen Therapeutics (NASDAQ:MGEN), which focuses on novel treatments for diseases that are underserved by today’s therapies. This focus makes MGEN stock an interesting albeit largely underappreciated niche investment.

colorful pills and vials sitting on a table
Source: Bukhta Yurii /

Miragen’s most advanced clinical program revolves around a treatment candidate known as VRDN-001. This is an antibody intended to treat thyroid eye disease.

We can all appreciate the importance of VRDN-001 as thyroid eye disease is a debilitating condition that significantly impacts patents’ quality of life. This condition can cause “bulging eyes,” double vision and even blindness.

The company hopes to commence a Phase 2 clinical trial of VRDN-001 for thyroid eye disease in 2021. In the meantime, what can MGEN stock holders look forward to? As we’ll see, a recent development should give Miragen’s stakeholders plenty to be excited about.

MGEN Stock at a Glance

Soon we will explore what was so special about Oct. 28 for holders of MGEN stock. For the time being, just know that the share price more than doubled on that particular day.

In fact, MGEN stock jumped from 51 cents to $1.26 during that trading session. As you might have figured out already, this wasn’t just a random occurrence. It was related to an announcement of great significance for Miragen and its shareholders.

Prior to that, MGEN stock wasn’t showing much promise for the bulls. Indeed, the share price has languished below the $1 level for much of October. That’s not great as Nasdaq may “require an issuer to maintain a bid price of at least $1 per share for a period in excess of ten consecutive business days” in order to stay on that exchange.

It’s highly encouraging to know that the bulls managed to push MGEN stock above the $1 threshold. So, what event could have caused such a massive price spike?

A Perfect Fit

Okay, I won’t keep you in suspense any longer. On Oct. 28, Miragen announced a stock-for-stock transaction in which the company acquired Viridian Therapeutics.

It’s a perfect fit because like Miragen, Viridian focuses on “advancing new treatments for patients with diseases that are underserved by today’s therapies.”

Moreover, Viridian is the company that initiated the VRDN-002 program, an extension of VRDN-001 which seeks “to reduce the dose required to achieve full efficacy” in thyroid eye disease patients.

Reportedly, the VRDN-002 program is advancing rapidly and Miragen expects to file an Investigational New Drug application for that program next year.

Value Creation Opportunity

But let’s not skip ahead to VRDN-002 at the expense of VRDN-001, which still offers tremendous potential for patients as well as Miragen’s shareholders.

Jeffrey S. Hatfield, Miragen’s chairman of the board of directors, asserted that his company is “excited by the potential for VRDN-001 to become a meaningful treatment option for patients living with [thyroid eye disease].”

As for the Viridian buyout, Hatfield remains supremely optimistic. Hatfield declared, “this acquisition represents the highest-potential value creation opportunity” for Miragen’s stock holders.

Further adding to that value creation is the news of Miragen’s sale of preferred stock to a group of institutional accredited investors. The expected proceeds of this private placement total approximately $91 million before deducting placement agent and other offering expenses.

$91 million can go a long way toward advancing the clinical studies of VRDN-001. It’s another reason to stay the course as the next leg up in MGEN stock could take place in the near future.

The Takeaway

If MGEN stock holders needed reasons to get excited about the company’s prospects, now they have two of them. The Viridian acquisition is a perfect fit for Miragen’s focus on high-need therapeutics.

Plus, the private placement will hopefully result in a $91 million for Miragen. All of this makes the spike in MGEN justifiable and the possibility of further upside much more likely.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. 

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC