Regenera Pharma Ltd. shareholders have submitted a formal offer to the board of Alcobra Pharmaceutical Ltd (Nasdaq: ADHD) to buy their shares in exchange for 66.6% of the combined company. As part of the proposed deal, Regenera’s shareholders will launch a $10 million tender offer to Alcobra’s shareholders at a valuation of $47.5 million for Alcobra, a 50% premium on last night's closing market cap of $31.42 million.
Alcobra's share price has lost most of its value since September 2014, when the main trial of Alcobra's flagship drug for treating ADHD was unsuccessful. A trial of another drug has since failed.
Regenera is a clinical stage company led by Check Point Software Technologies Ltd. (Nasdaq: CHKP) chairman Marius Nacht, Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) interim president and CEO Prof. Yitzhak Peterburg and Dr. Zadik Hazan, founder of Regenera, which is developing a novel drug that is applicable for a wide range of neurodegenerative diseases with a vast market potential.
Regenera has successfully completed Phase IIA in, NAION (optic nerve neuropathy, a disease with no treatment available today), receiving good feedback from the FDA. Regenera is preparing for a Phase III NAION trial, meaning it may be as close as 30 months from commercialization.
Pre-clinical data shows that the novel drug may be applicable to both rare and more common neurodegenerative diseases such as MSA/Parkinsonism and Dementia. Regenera is also aiming at the veterinary market with encouraging early signs.
Regenera’s shareholders believe that their offer will be beneficial and create value for both companies and their shareholders. To back this belief, Regenera’s shareholders have committed to purchase from Alcobra’s current shareholders, shares worth $10 million at company valuation of $47.5m for Alcobra.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2017
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