Rifle Effect

US-based Acer Therapeutics, of which Bukwang holds about 13% ownership, has been listed in NASDAQ.
US-based Acer Therapeutics, of which Bukwang holds about 13% ownership, has been listed in NASDAQ.

 

Acer Therapeutics Inc., an ultra-orphan drug development company, announced on July 4 that it has entered a merger agreement with Opexa Therapeutics Inc, a listed firm in NASDAQ . Bukwang has been investing in the US-based drug developer since 2015.

After the announcement on July 3 (local time in US), the share price of Opexa has soared by approximately 77 percent.

Under the merger agreement, Acer and Opexa are expected to own approximately 88.8% and the remaining 11.2%, respectively. Once the merger is closed during the third quarter of 2017, Opexa will change its name into Acer Therapeutics Inc., and will be listed in NASDAQ.

Bukwang has invested US$4 million in Acer and currently holds approximately 13% ownership prior to the merger.

Bukwang expects to have capital gains from the deal transaction as Acer will be listed in NASDAQ. Acer’s CEO Chris Schelling and one of Opexa’s management have mentioned that Acer will continue to develop and commercialize therapies for the treatment of patients with serious rare diseases.

It also has been found that a non-disclosure agreement (NDA) submission for EDSIVO, a leading product for the treatment of vEDS, with the U.S. FDA may take place in the first half of 2018, and EDSIVO could be on the market within the next two years. Also, as a public company, Acer will look forward to expand its pipelines and cooperate with a broader pools of investors.

Acer-001(MSUD) and EDSIVO, which are currently under development by Acer, have received orphan drug designation from the U.S. FDA. Acer-001 is currently being developed as the treatment for Maple Syrup Urine Disease (MSUD) and Urea Cycle Disorder (UCD).

An official from Bukwang said, “Currently, Bukwang is investing in bio-ventures and other global companies in effort to locate startups at early stage. Bukwang will also continue to expand its overseas business.”

 

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