Why Is Yumanity Therapeutics (YMTX) Stock Up 50% Today?

  • Yumanity Therapeutics (YMTX) stock is jumping on two definitive agreements.
  • The first deal is for the sale of its assets.
  • The second has the company undergoing a merger.
The letters "M&A" on a wooden table, surrounded by a calculator and other business items. YMTX stock

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Yumanity Therapeutics (NASDAQ:YMTX) stock is rocketing higher on Monday after announcing two definitive agreements.

The first of these has the clinical-stage biopharmaceutical company agreeing to an asset sale. This has Janssen Pharmaceutica agreeing to acquire YTX-7739, its lead clinical-stage product candidate, as well as its “unpartnered discovery-stage neuroscience product candidates and targets.”

The second definitive merger agreement is with Kineta. This will see the company become a wholly-owned subsidiary of Yumanity Therapeutics. The new company will be renamed Kineta, with current Kineta shareholders owning 85% of the combined company. YMTX shareholders will own the remaining 15% of the company.

Yumanity Therapeutics notes the first deal will have Janssen Pharmaceutica paying $26 million for its assets. The company says whatever remains from that after meeting merger agreements will be distributed to shareholders as a one-time special dividend.

Richard Peters, president and CEO of Yumanity Therapeutics, said the following about the deals.

“After evaluating Yumanity’s strategic alternatives, management and our Board of Directors believes that the proposed transactions are in the best interest of Yumanity’s stockholders … We are excited that our lead clinical-stage neurology asset and unpartnered assets will continue to be developed and we are very enthusiastic about Kineta’s innovative oncology pipeline.”

YMTX stock is seeing heavy trading on Monday alongside the agreements. This has over 24 million shares on the move as of Monday morning. That’s a major increase over its daily average trading volume of 464,000 shares.

YMTX stock is up 49.5% as of Monday morning.

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On the date of publication, William White 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.

Article printed from InvestorPlace Media, https://investorplace.com/2022/06/why-is-yumanity-therapeutics-ymtx-stock-up-50-today/.

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