MOUNTAIN VIEW, Calif. - Aditxt, Inc. (NASDAQ: ADTX), a health innovation company, has announced a definitive agreement to acquire Appili Therapeutics Inc. (TSX: APLI; OTCQX: APLIF), a developer of treatments for infectious diseases. The acquisition will be conducted through a court-approved plan of arrangement, with Aditxt's subsidiary Adivir, Inc. set to acquire all issued and outstanding shares of Appili.
Appili's portfolio includes the FDA-approved LIKMEZ™, a taste-masked oral suspension for bacterial infections, the tularemia vaccine program ATI-1701 backed by a USD $14 million award from the U.S. Department of Defense (DoD), and ATI-1801, a topical treatment for cutaneous leishmaniasis.
LIKMEZ is designed to improve patient compliance by making the antibiotic metronidazole easier to swallow. The U.S. FDA approval paves the way for future milestone payments and royalties from Saptalis Pharmaceuticals, LLC, which holds the manufacturing and commercialization rights.
ATI-1701 is a live attenuated vaccine targeting Francisella tularensis, a high-risk pathogen with bioterrorism potential. The non-dilutive funding from the U.S. DoD supports its development, including manufacturing and regulatory activities.
ATI-1801 is in a Phase 3 study for the treatment of cutaneous leishmaniasis, a WHO-classified Neglected Tropical Disease. Appili is working towards regulatory approvals and assessing the potential for a Priority Review Voucher to expedite the treatment's availability.
The acquisition aims to create synergies with Aditxt's existing programs, particularly in precision diagnostics. Amro Albanna, CEO of Aditxt, emphasized the importance of innovative public health solutions and the potential impact of integrating Appili's expertise.
Transaction details include Appili shareholders receiving a combination of Aditxt stock and cash per Appili share, with an expected shareholder ownership of 19.99% in Aditxt post-transaction. Appili's outstanding options and warrants will be cashed out based on their value relative to the transaction consideration. The deal also includes debt repayment commitments by Aditxt and is contingent on raising at least US$20 million in financing before closing.
The transaction, expected to close by early Q3 2024, is subject to approvals from Appili shareholders, courts, and regulatory bodies. Appili's directors and officers, along with certain shareholders, have agreed to support the transaction.
The information in this article is based on a press release.
InvestingPro Insights
As Aditxt, Inc. (NASDAQ: ADTX) forges ahead with its acquisition of Appili Therapeutics, investors are keeping a close eye on the company's financial health and market performance. According to the latest data from InvestingPro, Aditxt has a market capitalization of just $6.24 million USD, reflecting the small scale of this biotech innovator.
However, the company's financials reveal some challenges. Aditxt's revenue for the last twelve months as of Q3 2023 was reported at $0.75 million USD, with a concerning revenue decline of 12.15%. This contraction in revenue is further underscored by a significant quarterly revenue drop of 61.47% in Q3 2023. These figures may raise questions about the company's current revenue generation capabilities and its potential to absorb and integrate Appili's portfolio effectively.
Investors should also note that Aditxt's stock has been under considerable pressure. The price has plummeted by 91.28% over the last year, and the company's shares are trading at only 4.16% of their 52-week high. This volatility in the stock market could influence investor sentiment and the perceived value of the acquisition.
For those considering a deeper analysis, two InvestingPro Tips for Aditxt include the company's significant debt burden and the fact that it has been quickly burning through cash. These insights suggest that the financing of the acquisition and the subsequent integration of Appili's assets will be critical areas to monitor.
For a comprehensive view of Aditxt's financials and further strategic insights, investors are encouraged to explore the additional 10 InvestingPro Tips available at https://www.investing.com/pro/ADTX. And remember, you can use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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