Key points:
- The vTv Therapeutics stock price soared 84% on a $12.5m G42 investment.
- The deal gives G42 access to vTv’s diabetes drug candidate, TTP399.
- However, vTv still retains the right to market the drug in the US and EU.
- G42 has also committed to making further investments in vTv.
The vTv Therapeutics Inc (NASDAQ: VTVT) stock price rallied 84% premarket after signing a deal with G42 Investments to receive an investment worth up to $25 million. According to the terms of the agreements, G42 acquired 10.4 million ordinary shares in vTv Therapeutics for an initial sum of $2.5 million, paid in cash once the deal closes.
Also read: Five Best Pharmaceutical Stocks To Watch in 2022.
The remaining $12.5 million payment will be made a year later, on May 31, 2023. The agreement further stipulates that G42 investment could acquire another tranche of ordinary shares worth $30 million if the US Food and Drug Administration (FDA) approves the marketing and sale of a pharmaceutical product containing TTP399 in the United States.
Investors cheered vTv’s agreement with G42 Investments to see the two firms collaborate on clinical trials for pharmaceutical products containing TTP399, a liver selective glucokinase activator, as the active ingredient for the treatment of type 1 diabetes.
The comprehensive deal allows a G42 subsidiary to fund a portion of phase 3 clinical trials of TTP399. At the same time, vTv will grant G42 an exclusive license to develop and commercialize pharmaceutical products containing TTP399 in certain territories outside of the United States and the European Union.
Investors cheered the deal that will see vTv retail the rights to market pharmaceutical products containing TTP399 within the US and EU, which are some of the largest and most predictable pharmaceutical markets globally.
Rich Nelson, vT’s Interim CEO, said: “G42 Healthcare brings a unique combination of a strong commitment to the development of new impactful drugs and treatments, as demonstrated by their success and their leadership on COVID-19 testing and other product and service offerings in the healthcare spectrum, and substantial resources, making them an ideal partner for this program.”
Investors who missed out on today’s impressive gains in vTv Therapeutics stock should not chase its prices higher but should wait for a significant pullback before buying.
*This is not investment advice. Always do your due diligence before making investment decisions.
vTv Therapeutics stock price.
The vTv Therapeutics stock price soared 84.14% to trade at $1.0150, rising from Tuesday’s closing price of $0.5512.
