Aeglea BioTherapeutics Stock Surges Over 400% Today - What's Going On

Aeglea BioTherapeutics Inc (NASDAQ: AGLE) has acquired Spyre Therapeutics, a privately-held biotechnology company focused on developing antibody therapeutics for inflammatory bowel disease.

As part of the acquisition, Aeglea entered into a definitive agreement for a private placement of Series A non-voting convertible preferred stock, resulting in approximately $210 million in gross proceeds.

The funds will be used to advance Spyre's portfolio of IBD products and support operations until 2026.

Spyre's lead programs, targeting a4b7 and TL1A, are projected to enter clinical studies in 2024.

The acquisition and financing transactions provide Aeglea with immediate access to public capital markets and aim to accelerate research and development efforts for their biologics pipeline.

IBD, which causes chronic digestive tract inflammation, affects approximately 1.7 million patients in the U.S. The global IBD market, including Crohn's disease and ulcerative colitis, is estimated to exceed $29 billion by 2028.

In April, Aeglea BioTherapeutics engaged Wedbush Securities to assist in exploring strategic alternatives after the company reported disappointing interim results from the Phase 1/2 trial of pegtarviliase for Classical Homocystinuria.

Results from the third cohort (1.35 mg/kg) did not show a consistent reduction in homocysteine levels.

Further analysis indicated that participants in the third cohort developed anti-drug antibodies.

Price Action: AGLE shares are up 482.70% at $0.62 during the premarket session on the last check Thursday.

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article Aeglea BioTherapeutics Stock Surges Over 400% Today - What's Going On originally appeared on Benzinga.com

.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.