Vigil Neuroscience (NASDAQ:VIGL) stock is soaring higher on Thursday after the clinical-stage biotechnology company revealed a $40 million strategic investment from Sanofi (NASDAQ:SNY).
This investment has Sanofi purchasing 537,634 shares of Series A non-voting preferred shares at a price of $7.44 each. Each of these shares can be converted into 10 shares of VIGL stock.
As part of this investment agreement, Vigil Neuroscience is granting Sanofi exclusive right of first negotiation (ROFN) for its molecule TREM2 agonist program. This covers the “exclusive license, grant or transfer of rights” to research, development, manufacturing and commercialization.
Vigil Neuroscience notes that the investment from Sanofi will allow it to continue its clinical trials of VG-3927. This is currently in a Phase 1 trial as an Alzheimer’s disease treatment. The investment gives it enough funds to operate into 2026.
Vigil Neuroscience President and CEO Ivana Magovčević-Liebisch said this about the investment:
“We view Sanofi’s investment in Vigil as a validation of our promising precision medicine approach led by our two differentiated TREM2 modalities, iluzanebart and VG-3927, and Sanofi has provided valuable capital to help fund our pipeline.”
How This Affects VIGL Stock
With news of this investment comes heavy trading of VIGL shares on Thursday. That has more than 7 million units changing hands as of this writing. This is well above its daily average trading volume of about 165,000 shares.
VIGL stock is up 31.8% as of Thursday morning.
Investors will want to keep reading for more of the most recent stock market stories!
We have all of the latest market happenings ready to go on Thursday! Among that is what has shares of Assure (NASDAQ:IONM) stock up, the biggest pre-market stock movers this morning and more. All of this info is available at the links below!
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On the date of publication, William White did not hold (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.
