Shares of Protagenic Therapeutics (NASDAQ:PTIX) skyrocketed nearly 190% following the announcement of a merger with Phytanix Bio Inc., a move set to create a new biopharmaceutical entity named Phytanix, Inc. The combined company will focus on advancing innovative therapies targeting central nervous system (CNS) disorders, metabolic diseases, and stress-related conditions.
The deal brings together a diverse and complementary portfolio of six drug candidates, including PT-00114—a peptide in Phase I/IIa trials that may be eligible for regulatory data exclusivity. The pipeline will also feature a suite of cannabinoid-derived therapies protected by composition-of-matter patents, as well as novel stilbenoid-based compounds showing promise in preclinical epilepsy models.
Protagenic shareholders stand to gain from broader exposure to high-impact therapeutic areas, with key development milestones anticipated over the next 18 months. Phytanix’s leadership and scientific team, which includes veterans of GW Pharmaceuticals—developers of Sativex® and Epidiolex®—will join the combined company, bringing extensive expertise in neuroactive drug development.
Garo H. Armen, PhD, Executive Chairman of Protagenic, underscored the strategic alignment, stating, “This merger combines two synergistic pipelines with the potential to address critical unmet needs in neuropsychiatry and beyond.” President and CEO Barrett Evans added, “We are excited about the collaborative opportunities this merger unlocks for accelerating patient-focused innovation and delivering value to shareholders.”
According to the share exchange agreement finalized on May 16, 2025, Protagenic will issue a combination of common and preferred stock—including Series C, C-1, and D Preferred Shares—along with warrants, to existing Phytanix Bio stakeholders. Upon closing, Phytanix shareholders will hold approximately 65% of the newly combined company, while Protagenic’s existing investors will retain about 35%.
The issuance of common shares tied to the conversion of preferred stock and exercise of warrants will require shareholder approval, in accordance with Nasdaq listing rules. The market’s strong reaction reflects investor enthusiasm around the enhanced drug pipeline and the strategic rationale behind the merger.
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