In the last trading session, the stock price of Inotek Pharmaceuticals Corp (NASDAQ:ITEK) declined more than 2% to close the day at $2.39. The decline came at a share volume of 128,299 compared to average share volume of 1.10 million. Inotek is a biopharmaceutical firm that was focused on the development, commercialization and discovery of therapies for ocular ailments, including glaucoma. Its preceding studies failed to meet primary efficacy objective, and the firm is now focusing on assessing strategic alternatives.
On October 12, Inotek Pharmaceuticals reported the submission with the US SEC its preliminary proxy statement pertaining to with the previously reported proposed combination of Rocket Pharmaceuticals and Inotek. In what seems to be a reverse merger, Rocket Pharmaceuticals will be the surviving firm.
Under the guidelines of the merger deal, shareholders of Rocket will get shares of newly released Inotek stock in a private placement. Rocket stockholders are anticipated to own around 81% of the combined firm and existing Inotek shareholders will retain nearly 19% of the combined firm.
With this deal, Rocket’s rich pipeline is anticipated to advance even more fast into what company already witness as a transformational year for the firm. The firm anticipates to enter the clinic next year, with clinical evidence of concept report from one or more of the lentiviral plans in 2018.
More particularly, Rocket has numerous near-term proof of concept and clinical catalysts, a well-supported operation as well as a management team with leadership expertise. It is the reason, the analysts covering Inotek considers that 19% of the combined firm is comparatively more valuable than the 100% of separate Inotek.
The management of Rocket Pharmaceuticals has the vision to establish a fully-integrated platform gene therapy firm with a portfolio of different treatments for devastating genetic ailments. As per the update, the combined firm focus will be on advancing and developing its pipeline of gene treatments based on the LVV and AAV gene therapy platforms.