A merger deal between medical device companies will a result in a new Baltimore-based company with a ticker symbol appearing on the Nasdaq.
According to a statement issued by the companies this week, MyMD Pharmaceuticals is merging with Akers Biosciences, a publicly traded company based in West Deptford, New Jersey. Going forward, the combined company will be listed as MYMD on the NASDAQ exchange.
Over the last seven years, MyMD has been developing a pair of drug candidates that use immunotherapy, which involves treating a disease by activating the body’s immune system to fight it. One of the candidates is targeting autoimmune and age-related diseases. It has begun clinical trials on human patients that are necessary for any pharmaceutical seeking approval to market from the FDA, with a Phase 1 study completed and a second expected in the first quarter of next year.
Another candidate is synthetic derivative of cannabidiol, or CBD.
Going forward, the combined companies will focus on developing the candidates in MyMD Pharmaceuticals’ pipeline.
Dr. Chris Chapman, who is chief medical officer of MyMD, will serve as president of the company, and it will be based in Baltimore. Dr. Adam Kaplin, an assistant professor of psychiatry and behavioral sciences at the Johns Hopkins University School of Medicine in Baltimore, will become chief scientific officer of the company.
“As we enter Phase 2 clinical trials and continue to advance our drug candidates toward commercialization — we believe this merger is the natural next step for us,” Dr. Chapman said in a statement, noting that “gaining access to public capital markets and Akers’ capital resources should allow us to accelerate our plans.”
Under the merger, MyMD shareholders will own 80% of the company, while Akers will own 20% of the company. Along with the merger, the company will raise Akers entered into an agreement to raise $18 million from investors through a sale of common stock. Akers will also agree to loan MyMD up to $3 million.
The deal is expected to close in the first half of 2021.-30-