NEWTOWN, Pa. and ROCKVILLE, Md. - Onconova Therapeutics, Inc. (NASDAQ: NASDAQ:ONTX) and Trawsfynydd Therapeutics, Inc. have announced the completion of their merger, forming a new entity named Traws Pharma, Inc. The combined company will commence trading on NASDAQ under the ticker symbol TRAW starting Wednesday, April 3, 2024.
The merger aims to leverage both companies' strengths in developing treatments for viral diseases and cancer. Traws Pharma will advance three potential best-in-class assets: viroksavir for influenza, travaltrelvir for COVID-19, and narazaciclib for low-grade endometrioid endometrial cancer (LGEEC).
A concurrent private placement led by OrbiMed and Torrey Pines is expected to close on April 3, 2024, providing Traws with an estimated $28 million cash balance, which will support the progression of its antiviral and cancer programs. The first top-line results from Phase 2 studies of viroksavir and travaltrelvir are anticipated in the second half of 2024.
Dr. Werner Cautreels will lead Traws Pharma as the incoming CEO, supported by a skilled team from both Onconova and Trawsfynydd. The board of directors will include representatives from both companies, with Executive Chairman Iain Dukes DPhil (OrbiMed) and Nikolay Savchuk, Ph.D. (Torrey Pines), playing significant roles.
Traws Pharma's proprietary portfolio includes TRX100 (viroksavir), a cap-dependent endonuclease inhibitor, and TRX01 (travaltrevir), an Mpro protease inhibitor for COVID-19. Both are in Phase 1 studies, with further clinical trials planned for the second half of 2024. Narazaciclib, a CDK 4/6 inhibitor for LGEEC, is currently in a Phase 1/2a study to define the recommended Phase 2 dose.
The merger and financing transactions entail Onconova issuing common stock and Series C non-voting convertible preferred stock to Trawsfynydd stockholders, resulting in a 75.7% ownership for Trawsfynydd, 13.7% for Onconova, and 10.6% for new investors, excluding transaction fees.
Onconova stockholders as of April 15, 2024, will receive a contingent value right related to narazaciclib and rigosertib proceeds.
The companies will host a webcast to discuss the transaction details on April 2, 2024, at 8:30 a.m. ET. This article is based on a press release statement.
InvestingPro Insights
As Onconova Therapeutics transitions into Traws Pharma following its merger with Trawsfynydd Therapeutics, investors are closely monitoring the financial health and market performance of the company. According to InvestingPro data, Onconova's market capitalization stands at a modest $21 million, reflecting the size of the company within the biotech industry.
Despite the challenges faced by many biotech firms, Onconova appears to be maintaining a strong liquidity position. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide some financial flexibility as the newly formed Traws Pharma advances its clinical programs.
Furthermore, analysts predict that the company will be profitable this year, a critical milestone for any biotech firm navigating the expensive and time-consuming drug development process.
Investors interested in the company's stock price performance will note that Onconova has experienced a significant return over the last week, month, and three months, with respective total returns of 11.11%, 20.5%, and 26.58%. This positive trend could signal growing investor confidence in the company's prospects post-merger.
For a deeper dive into Onconova's financials and stock performance, including additional InvestingPro Tips such as the company's cash burn rate and valuation implications, visit InvestingPro. There are 13 additional tips available for Onconova, which could provide further insights into the company's financial health and market potential. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and stay ahead with real-time analytics and expert insights.
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