XORTX Therapeutics Inc (NASDAQ:XRTX) shares surged 40% in premarket trading on Friday after the company announced it had signed a binding term sheet to acquire a Renal Anti-Fibrotic Therapeutic Program from Vectus Biosystems Limited.
As part of the deal, the late-stage clinical pharmaceutical firm will gain rights to VB4-P5 — a novel new chemical entity — along with all related intellectual property, regulatory files, and manufacturing data. The asset is currently at the pre-IND stage and targets both rare and widespread kidney diseases.
Under the agreement, XORTX will pay $3.0 million to Vectus, to be settled in common shares or equivalent securities at a deemed issue price of $0.86 per unit. This amount is subject to adjustments but cannot fall below the Discounted Market Price defined by TSXV policies.
“The opportunity to acquire the VB4-P5 program was highly compelling. This program is underpinned by a novel, patented small molecule with robust global patent protection and strong preclinical evidence,” said Dr. Allen Davidoff, Chief Executive Officer of XORTX.
The acquisition supports the company’s strategy of advancing innovative treatments for progressive kidney disease. The transaction is expected to close within 90 days, pending regulatory approvals and compliance with stock exchange requirements.
Vectus has agreed to a voluntary lockup, restricting the sale of the securities for 180 days following the closing.
XORTX Therapeutics stock price
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