Home Uncategorized Cytovia Therapeutics will go public through a $ 600 million SPAC merger

Cytovia Therapeutics will go public through a $ 600 million SPAC merger

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Video source: YouTube, Cytovia Therapeutics


Cytovia Therapeutics announced on Tuesday that it has agreed to merge with Isleworth Healthcare Acquisition Corp (ISLE).


The deal estimates the combined organization at an estimated $ 602 million, provided the share price is $ 10. The companies expect the deal to be completed in the third quarter of 2022, and the combined company is expected to be listed on the NASDAQ under the symbol INKC.


The new company will receive up to $ 227 million in gross profit from a combination of approximately $ 207 million in cash on Isleworth’s trust account and $ 20 million in PIPE financing by new investors.


Cytovia is developing platforms for natural killer cells (NK) and antibodies that deal with NK, to fight cancer using engineered stem cells and multispecific antibodies. The company uses induced pluripotent stem cells (iPSCs) as the starting material for its cellular products, which it calls iNKs (iPSC-derived NK cells).


Cytovia is headquartered in Aventura, Florida, with research labs in Natik, Massachusetts, and an existing cell manufacturing plant (cGMP) in Puerto Rico.



Pipeline


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Cytovia’s leading program is development hepatocellular carcinoma (HCC) GPC3-targeted therapy is a promising new target for solid tumors. FCC is the most common type of liver cancer and the leading cause of cancer death worldwide. The first four candidates for the product will be evaluated as monotherapy and as combination therapy.



Image source: Cytovia Therapeutics



Investment dissertation


Investors with a high risk tolerance may consider Isleworth shares before closing the deal, as expected in the third quarter. 534,900 shares traded on Wednesday after news of the merger, exceeding the average daily volume of 29,800 shares for the previous month. Those who are less prone to risk should wait until the deal closes.


Although investments in Cytovia Therapeutics carry a twofold risk of merging SPAC and early-stage biotechnology, we find that much is liked in the company’s potential.


  • The therapeutic market opportunity for liver cancer is multibillion dollars.
    • Liver cancer is the sixth most common cancer and the fourth leading cause of cancer death worldwide.
    • There is a large unmet need: 72% of patients do not respond to the current standard of care (atezolizumab-bevacizumab), and progression-free survival is only 6.8 months.
  • FCC is the most common type of liver cancer and is the leading cause of death from cancer worldwide. As you know, it is difficult to treat in the early stages.
  • Cytovia’s GPC3 target is a cell surface protein found in most HCC tumor cells and, critically, is absent in normal liver tissue and other organs.
  • The company has many corporate and academic partnerships:
    • Cellectis ( CLLS)
    • CytoImmune Therapeutics
    • Hebrew University of Jerusalem
    • INSERM, French National Institute for Health and Medical Research
    • New York Stem Cell Foundation
    • National Cancer Institute
    • University of California, San Francisco
    • CytoLynx Therapeutics Joint Venture focused on research, production and commercialization in Greater China and beyond.
  • This merger with Isleworth SPAC will provide ample runway through a wide pipeline by 2024.
  • Over the next two years, Cytovia expects many milestones that could become individual catalysts for stocks:


Click to enlarge



Image source: Cytovia Therapeutics


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Source: Stock news

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