MOUNTAIN VIEW, Calif. - Aditxt, Inc. (NASDAQ: ADTX), a health innovation company, has announced its intention to acquire Appili Therapeutics Inc. (TSX: APLI; OTCPink: APLIF), a firm specializing in infectious disease therapeutics. The acquisition is pending a special shareholder meeting by Appili scheduled for November 6, 2024, where a vote will take place.
Appili has developed a commercial-stage pipeline with a focus on infectious diseases and biodefense. Since its founding in 2015, the company has raised over CAD $100 million towards this effort. Their portfolio includes LIKMEZ™, an FDA-approved oral liquid antibiotic launched in 2023, which is now available in the U.S. Appili benefits from sales-based milestone payments and royalties from Saptalis Pharmaceuticals LLC, which markets LIKMEZ.
Additionally, Appili is working on two programs, ATI-1701 and ATI-1801, which may be eligible for FDA Priority Review Vouchers (PRVs), subject to the renewal of specific legislation. ATI-1701 is a vaccine candidate for tularemia, while ATI-1801 is a topical antiparasitic product in advanced clinical trials for treating cutaneous leishmaniasis (CL), a disfiguring disease prevalent in tropical regions.
The proposed acquisition aligns with Aditxt’s strategic expansion into infectious disease management. Amro Albanna, CEO of Aditxt, emphasized the potential global impact of Appili's portfolio in addressing urgent public health challenges. Dr. Don Cilla, CEO of Appili, also expressed support for the acquisition, noting the strategic alignment and enhanced capabilities it would bring.
The transaction's completion is contingent on several conditions, including shareholder approval and Aditxt's ability to secure sufficient capital to meet its closing obligations. There is no guarantee that the conditions will be met or that the acquisition will finalize.
This news is based on a press release statement and does not imply any endorsement of the claims.
In other recent news, biopharmaceutical company Aditxt, Inc. is facing potential Nasdaq delisting due to non-compliance with the minimum bid price rule. The company has until April 1, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 per share for at least 10 consecutive business days. Aditxt has previously attempted to address this issue by implementing a reverse stock split.
Simultaneously, Aditxt announced plans to acquire Evofem Biosciences (OTC:EVFM), Inc. and Appili Therapeutics, Inc., with reported revenues of $7.8 million and $6.0 million respectively. These acquisitions, part of its expansion into women's health and public health sectors, are contingent on several conditions, including approvals from target shareholders and the raising of sufficient capital.
Further, Aditxt's subsidiary, Pearsanta, Inc., has applied for a $2 million grant from the Prostate Cancer Research Program to support the development of early detection and management strategies for prostate cancer. Pearsanta has also appointed Christopher Mitton as its new president. These recent developments were analyzed by analysts from H.C. Wainwright & Co.
InvestingPro Insights
As Aditxt, Inc. (NASDAQ: ADTX) moves forward with its plans to acquire Appili Therapeutics, investors should be aware of some critical financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Aditxt's market capitalization stands at a modest $0.13 million, reflecting its current position as a small-cap company in the biotech sector. The company's revenue for the last twelve months as of Q2 2024 was $0.33 million, with a concerning revenue growth decline of -65.22% over the same period.
InvestingPro Tips highlight some challenges facing Aditxt. The company is operating with a significant debt burden and is quickly burning through cash. This financial situation could potentially impact the company's ability to secure the capital needed to complete the Appili acquisition.
On the valuation front, Aditxt is trading at a low Price / Book multiple of 0.02, which could indicate that the stock is undervalued. However, this should be considered alongside the fact that the company is not profitable over the last twelve months and analysts do not anticipate profitability this year.
The stock's recent performance has been notably weak, with InvestingPro data showing a one-month price total return of -93.9% and a year-to-date return of -99.54%. This significant decline aligns with the InvestingPro Tip that the stock is trading near its 52-week low.
For investors considering Aditxt's potential following the proposed acquisition, it's worth noting that InvestingPro offers 20 additional tips for ADTX, providing a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable in assessing the risks and potential rewards of Aditxt's strategic move into infectious disease management through the Appili acquisition.
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