- The stock price of EyeGate Pharmaceuticals Inc (NASDAQ: EYEG) increased by over 135% pre-market. This is why it happened.
The stock price of EyeGate Pharmaceuticals Inc (NASDAQ: EYEG) – a clinical-stage company developing and commercializing products for treating inflammatory and immune diseases with a focus on the eye and nervous system – increased by over 135% pre-market. Investors are responding positively to EyeGate Pharmaceuticals announcing that Brian M Strem, Ph.D., Co-Founder, Director and former Chief Executive Officer of Okogen as well as Co-Founder and Managing Director of Bayon Therapeutics, was appointed as permanent President, Chief Executive Officer and board member, effective immediately. Plus EyeGate has entered a non-binding letter of intent (LOI) to buy Bayon Therapeutics, a private ophthalmic specialty pharmaceutical company focused on using light-sensitive ‘photoswitch’ small molecules, specifically designed to restore vision in patients with inherited and age-related degenerative retinal diseases.
Strem is a biotech executive and entrepreneur with a strong ophthalmology background. Dr. Strem co-founded Bayon Therapeutics where he in-licensed global exclusive rights to the Intellectual Property covering multiple generations of photoswitches. And the lead small molecule, termed “BENAQ”, is being prepared for a Phase 1b clinical trial in patients with late-stage retinitis pigmentosa.
Dr. Strem also co-founded Okogen, an ophthalmic company focused on a novel therapeutic for the treatment of viral infections of the eye, where he was most recently, Director and Chief Executive Officer. And Dr. Strem led a successful Series A financing and was responsible for all aspects of corporate strategy, intellectual property, fundraising, drug development, market access and positioning. Before founding Bayon and Okogen, Dr. Strem held leadership positions at Sound Pharmaceuticals as VP of Business Development, as well as Allergan, where he served as Director of Global Business Development and was instrumental in M&A and licensing for ophthalmology and drug development. Before joining Allergan, Dr. Strem was Director of Global Business Development at Shire Pharmaceuticals, where he was responsible for scientific licensing of new therapeutics in regenerative medicine, rare disease, and ophthalmology.
Pursuant to the Term Sheet, EyeGate and Bayon intend to negotiate and enter into a definitive agreement pursuant to which EyeGate would buy Bayon in connection for closing consideration of 50,000 shares of the EyeGate’s common stock, and potential earnout consideration of up to approximately $7.1 million or, in EyeGate’s discretion, up to approximately 2.2 million shares of the Eyegate’s common stock or common stock equivalents, based on the achievement of successive milestones based on clinical trial data and regulatory approval of Bayon products.
The further terms of the proposed transaction will be provided by upon EyeGate and Bayon entering into a definitive agreement for the transaction. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will happen at all.
“Brian’s dynamic entrepreneurship, business development achievements and ability to drive his vision forward makes him exceptionally well qualified for this significant inflection point in EyeGate’s evolution. We are pleased by the recent advancements across our clinical development program for PP-001 and OBG: two unique platforms with broad therapeutic potential among a diverse range of ocular surface and systemic diseases. We look forward to building on this momentum, and we have the greatest confidence in Brian and the executive team’s ability to marshal the necessary resources to maximize the value of our platform, explore additional pipeline expansion opportunities and successfully lead EyeGate through this next phase of continued growth.”
“We would like to thank Franz Obermayr, PhD., for his leadership as Acting Chief Executive Officer, and we look forward to continued collaboration as he transitions and reassumes his position as EVP Clinical Development.”
— Stephen From, Executive Chairman of EyeGate
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