Altimmune (NASDAQ: ALT) shares are trading higher after the company announced it will acquire Spitfire Pharma, which will add a non-alcoholic steatohepatitis (NASH) drug candidate to the company's portfolio.
Altimmune is a clinical-stage biopharmaceutical company and Spitfire is a portfolio company of Presidio Partners founded by John Nestor and Velocity Pharmaceutical Development.
The transaction is expected to close in July. Spitfire shareholders will receive an upfront payment of $5 million in Altimmune common stock and will be eligible to receive an additional $8 million in future regulatory and clinical milestones payable in cash or common stock.
"NASH is a significant unmet need. There are no approved treatments available, and prevalence is growing worldwide as a consequence of an expanding obesity epidemic. Compelling preclinical data generated by Spitfire suggests that ALT-801 could reverse obesity, a primary cause of NASH, thereby reducing excess liver fat, inflammation and fibrosis associated with the disease" said Dr. Vipin Garg, President and CEO of Altimmune.
Altimmune shares traded higher by 12.9% at $2.80 in Tuesday’s pre-market session. The stock has a 52-week high of $36.25 and a 52-week low of $1.70.
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