ANCN Stock Price Increases Over 100% Pre-Market: Why It Happened

By Amit Chowdhry ● March 8, 2021
  • The stock price of Anchiano Therapeutics Ltd (NASDAQ:ANCN) increased by over 100% pre-market. This is why it happened.

The stock price of preclinical biopharmaceutical Anchiano Therapeutics Ltd (NASDAQ:ANCN) increased by over 100% pre-market. Investors appear to be responding to a letter that was sent out to shareholders about a proposed merger. The letter is inviting shareholders of Anchiano Therapeutics to attend a special meeting at 4:30 PM local time on March 15 at the law offices of Goldfarb Seligman & Co. in Tel Aviv.

Anchiano Therapeutics and Chemomab Ltd. (a clinical-stage biotech company focusing on the discovery and development of innovative therapeutics for fibrosis-related diseases with high unmet need) had announced their entry into a definitive merger agreement pursuant to which the shareholders of Chemomab would become the majority holders of the combined company back in December. The proposed merger would create a public company focused on advancing Chemomab’s lead product CM-101. And shareholders of both companies holding shares sufficient to approve the merger had entered into shareholder support agreements with the respective companies in support of the transaction.

Concurrent with the merger, Chemomab was seeking to complete a PIPE financing to advance CM-101 into Phase 2 clinical trials in rare fibrotic indications as well as to further develop Chemomab’s earlier-stage pipeline. Initial efforts will focus on orphan indications including primary sclerosing cholangitis (PSC) and systemic sclerosis (SSc) – which are inflammatory-fibrotic diseases affecting multiple organs such as the liver (in PSC) and skin and lungs (in SSc). Both indications have a significant unmet need, with patients suffering from debilitating symptoms and no FDA-approved disease-modifying treatment options. The combined company is also expecting to advance CM-101 into a Phase 2a trial to evaluate the antibody’s anti-fibrotic effect in patients diagnosed with non-alcoholic steatohepatitis (NASH).

Upon the closing of the merger, the combined company will assume the name “Chemomab Therapeutics Ltd.” and will be led by Chemomab’s management team, headed by its co-founder and chief executive officer, Adi Mor, Ph.D.  Neil Cohen, chief executive officer of Anchiano, will join the board of Chemomab at closing.

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