HUNTINGTON BEACH, CA - Mosaic ImmunoEngineering Inc. (OTC PINK:CPMV), a biotech company specializing in immunotherapies for cancer treatment, today announced a definitive agreement to acquire clinical stage assets from Oncotelic Therapeutics, Inc. (OTCQB:OTLC). The acquisition includes necroptosis cancer therapies and access to Oncotelic's AI platform for identifying immunotherapy combinations.
According to the terms, Mosaic will issue $15 million in common stock to Oncotelic upon closing the agreement, with potential additional stock valued at $15 million based on milestone achievements. The transaction, which is contingent on due diligence and shareholder approval, will integrate Oncotelic's vascular disruptive agents (VDAs) into Mosaic's portfolio. These agents are designed to obstruct tumor blood flow and activate an immune response against cancer cells.
Mosaic's President and CEO, Steven King, expressed optimism about the potential of the acquired assets to address cancers with high unmet medical needs, including uveal melanoma and retinoblastoma. The company plans to initiate new clinical trials following the technology transfer from Oncotelic.
Dr. Vuong Trieu, CEO of Oncotelic, highlighted the collaborative effort with Mosaic to further develop AI-driven necroptosis cancer therapies. Mosaic's experience in securing over 30 FDA and global product approvals is expected to facilitate the rapid development of these technologies.
Necroptosis therapies aim to activate the body's immune response against tumors by inducing necrotic cell death. This approach contrasts with the more complex and expensive tumor infiltrating lymphocyte (TIL) cell therapy. Mosaic intends to develop these therapies in conjunction with proprietary AI technology.
The announcement is based on a press release statement and contains forward-looking statements subject to risks and uncertainties, including the success of entering a definitive agreement, obtaining shareholder approval, and advancing the VDA technology into clinical trials. The information provided reflects the current expectations of Mosaic's future operations and product candidate development.
InvestingPro Insights
Mosaic ImmunoEngineering's strategic acquisition of Oncotelic Therapeutics' assets marks a significant step in the expansion of its immunotherapy portfolio. As investors assess the potential impact of this move on the market, it's crucial to consider key financial metrics and analyst insights from InvestingPro.
InvestingPro Data for Oncotelic Therapeutics (OTCQB: OTLC) indicates a market capitalization of 16.79 million USD, suggesting a relatively small but focused player within the biotech industry. Despite a challenging financial performance over the last twelve months, with an operating income margin at -806.96%, the company has experienced a strong return over the last month, with a price total return of 16.73%. This could signal growing investor confidence in the company's prospects, especially in light of the recent acquisition news.
InvestingPro Tips reveal that analysts anticipate a sales decline in the current year for Oncotelic, which might be a concern for investors looking for immediate growth. Additionally, the company's short-term obligations exceeding its liquid assets may raise questions about its financial stability in the near term. However, the strong return over the last month, at 16.73%, and the large price uptick over the last six months, at 45.83%, could be indicative of market optimism towards Oncotelic's strategic initiatives and its niche position in the biotech industry.
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