LMNL Stock Price Increases Over 93% Intraday: Why It Happened

By Amit Chowdhry ● Aug 9, 2021
  • The stock price of Liminal BioSciences Inc (NASDAQ: LMNL) increased by over 93% during intraday trading. This is why it happened.

The stock price of Liminal BioSciences Inc (NASDAQ: LMNL) increased by over 93% during intraday trading. Investors are responding positively to Liminal BioSciences announced that its subsidiary Prometic Biotherapeutics (PBT) entered into a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for $105 million.

The PRV was granted by the U.S. Food and Drug Administration (FDA) with the approval of Ryplazim for the treatment of patients with plasminogen deficiency type 1 (hypoplasminogenia). And pursuant to the terms of the agreement, PBT will receive an upfront payment of $105M upon closing of the transaction. 

The closing is subject to customary closing conditions, including expiration of the applicable waiting period under U.S. antitrust clearance requirements. And under the terms of the previously announced Share Purchase Agreement entered into with Kedrion S.p.A (Kedrion) dated June 22, 2021 (the SPA), Liminal Biosciences is entitled to retain an amount equal to 70% of the net sales proceeds of the sale of the PRV. 

Concurrent with the signature of the definitive agreement for the sale of the PRV, Liminal BioSciences entered into a guaranty agreement to guaranty the performance of PBT’s obligations under the agreement up to the closing of the SPA.

KEY QUOTES:

“We are pleased to announce the sale of the PRV, which will provide an important source of non-dilutive capital to advance the continued development of our small molecule pipeline. This transaction is also another key milestone in completing the divestiture of our remaining plasma-derived therapeutics business to Kedrion.”

“Our priorities now are to move to a full analysis of the complete PK data set from the phase 1 multi-ascending dose clinical trial for fezagepras, which will help determine the choice of any other potential indications for further development with that compound, as well as continuing with the development of our GPR84 and OXER1 programs. We look forward to providing a more comprehensive update on these programs in due course.”

— Bruce Pritchard, CEO of Liminal BioSciences

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.