OncoGenex Pharmaceuticals, Inc. (Nasdaq: OGXI) Announces Merger – Shares Higher

OncoGenex Pharmaceuticals, Inc. – Nasdaq: OGXI

OncoGenex Pharmaceuticals, Inc. shares, traded on the Nasdaq under ticker OGXI, are up over 50% on heavy volumes. OncoGenex develops novel therapeutics that target important mechanisms of treatment resistance in cancer with the potential to redefine treatment outcomes for patients with a variety of cancers.

Price action is likely due to the announcement that OncoGenex Pharmaceuticals, Inc. will be merging with privately-held Achieve Life Science Inc. The proposed merger will create a clinical-stage company focused on clinical and commercial development of cytisine, a selective nicotine receptor partial agonist currently in late-stage development for smoking cessation.  Two recent Phase 3 trials in over 2,000 patients using cytisine as a smoking cessation aid have been completed, with positive results published in the New England Journal of Medicine. In addition to cytisine, the combined company’s pipeline will also include apatorsen, a once-weekly intravenous drug designed to inhibit production of heat shock protein 27 to disable cancer cells’ defenses and overcome treatment resistance.

Several firms have assigned a rating of “Buy” to OGXI. OncoGenex Pharmaceuticals, Inc. reported a EPS loss of $0.64 but that has steadily improved since 2013 when it delclared an EPS loss of $2.17. Sales have not fared as well. OncoGenex Pharmaceuticals, Inc. reported 2013 sales of $29.9 million and $18.2 million in 2015. Shares outstanding of OGXI have increased from 14.68 million in 2013 to 26.15 million in 2015.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

Author: Marcus Anderson

Marc Anderson is a pseudonym. Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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