Oncobiologics Inc. (NASDAQ:ONS)
Oncobiologics Inc. (NASDAQ:ONS) fell 5.94% after announcing the closure of a previously announced strategic partnership with GMS Tenshi holdings. The partnership provides the clinical stage biopharmaceutical company with the financial muscle needed to accelerate the development and commercialization of biosimilar candidates.
Purchase & Exchange Agreement
Oncobiologics Inc. (NASDAQ:ONS) is down by more than 50% for the year, having underperformed the overall industry for the better part of the year. The stock is currently trading in a downtrend and close to its 52-week low of $0.90 a share.
Pursuant to a Purchase and Exchange Agreement signed in September, GMS Tenshi is to receive Series A Convertible Preferred stock in exchange for $25 million. The investor has also been offered the option of acquiring warrants, for the purchase of an additional 16.8 million shares, with an aggregate exercise price of $15 million.
“This investment will also significantly enhance our commercialization abilities in emerging markets, along with our partnering and licensing capabilities. Our new collaborator shares in our vision is to accelerate the commercialization of the BioSymphony™ Platform and our pipeline, in the hopes of bringing affordable biologic drugs to patients around the world,” said CEO Pankaj Mohan.
Oncobiologics board has elected Faisal G. Sukhtian and Joe Thomas to the board of directors to fill vacancies left by Robin Smith Hoke and Donald J. Griffith. The two will represent GMS Tenshi under the Investors Rights Agreement.
The two companies have also entered into a joint development and License Agreement. The agreement provides GMS Tenshi with rights to Oncobiologics Inc. (NASDAQ:ONS) two lead biosimilar assets ONS-1045 and ONS-3010, in emerging markets of China, India, and Mexico.
Oncobiologics Inc. (NASDAQ:ONS) plans to use net proceeds from the private placement for Phase 3 trials of its lead biosimilar candidate ONS-3010. The company has already completed Phase 1 clinical trials and is now preparing to enter Phase 3 trials next year. The candidate drug is being developed as HUMIRA biosimilar.
“Our objective is to help Oncobiologics prepare ONS-3010 so that it can be launched alongside other first-wave HUMIRA® Biosimilars with potentially improved tolerability compared to the originator product as reported in the successful Phase 1 trial,” GMS Tenshi In a statement.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.