The share price of EyeGate Pharmaceuticals (NASDAQ:EYEG) stock has more than doubled at Tuesday’s market open after the clinical-stage eye-disease-treatment developer said it intends to acquire Bayon Therapeutics. EYEG stock was up more than 101% in early trading.
Bayon is a privately held ophthalmic pharmaceutical company developing a novel, vision-restoring small molecule platform. It is focused on using light sensitive “photoswitch” small molecules, specifically designed to restore vision in patients with inherited and age-related degenerative retinal diseases.
New CEO Set to Lead EYEG Stock
Today’s deal will be for 50,000 shares of EYEG common stock and a potential earnout consideration of up to approximately $7.1 million or, at the company’s discretion, up to roughly 2.2 million shares of the EyeGate common stock “or common stock equivalents, based on the achievement of successive milestones based on clinical trial data and regulatory approval of Bayon products.”
The acquisition will likely be among the top priorities of Brian Strem, who was named EyeGate’s new president and CEO. A co-founder and managing director of aquiree Bayon, Strem is a seasoned biotech executive and entrepreneur with a strong ophthalmology background.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor.