Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
MIAMI - MIRA Pharmaceuticals, Inc. (NASDAQ:MIRA), a company specializing in treatments for neurological and metabolic disorders, has announced the approval by its Board of Directors of a strategic acquisition of SKNY Pharmaceuticals, Inc. The company, currently valued at $19.5 million in market capitalization, maintains a strong liquidity position with a current ratio of 3.99. This move is contingent on the approval of shareholders from both companies and follows independent valuations of the two entities.
A third-party financial analysis by Moore Financial Consulting has valued SKNY Pharmaceuticals at approximately $30.5 million and MIRA at $30 million. These assessments underscore the potential of the merger to create a combined enterprise worth over $60 million, positioning the company to tap into significant therapeutic markets. According to InvestingPro data, MIRA holds more cash than debt on its balance sheet, providing financial flexibility for this strategic move. [Get access to 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro.]
SKNY’s leading compound, SKNY-1, is in development as an oral therapeutic that acts on cannabinoid receptors and monoamine oxidase B, targeting both metabolic dysfunction and nicotine dependence. With the global weight loss drug market expected to exceed $150 billion by 2030 and the U.S. smoking cessation market projected to grow to $50.90 billion by 2030, MIRA’s acquisition of SKNY-1 is poised to address substantial and underserved health concerns. While analysts don’t expect profitability this year, MIRA has demonstrated strong momentum with a 52% return over the past year.
According to MIRA CEO Erez Aminov, the merger will unify two distinct pipelines and market opportunities under a single strategic development of first-in-class therapies for pressing public health needs. Dr. Itzchak Angel, Chief Scientific Advisor at MIRA, has highlighted the pharmacological promise of SKNY-1, emphasizing its potential in treating cravings, addiction, and metabolic conditions with a neurochemical basis.
As part of the merger terms detailed in a binding letter of intent, SKNY is required to hold a minimum of $5 million in cash or assets, to be transferred upon closing. MIRA is preparing to file with the U.S. Securities and Exchange Commission to seek shareholder approval for the merger.
This news is based on a press release statement and reflects the company’s projections and expectations regarding the potential merger with SKNY Pharmaceuticals, Inc. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially. Further details on these risks are available in MIRA’s SEC filings. InvestingPro analysis indicates the company’s overall financial health score is FAIR, with its next earnings report expected on May 28, 2025. [Discover detailed financial analysis and real-time alerts with InvestingPro.]
In other recent news, MIRA Pharmaceuticals has reported several advancements related to its drug candidate, Ketamir-2. The company announced successful results from a neurotoxicity study, which showed no signs of brain toxicity in high-dose treatments. This study is crucial for the ongoing regulatory process with the U.S. Food and Drug Administration as MIRA prepares for human trials. Additionally, MIRA has completed in vitro release testing for its Ketamir-2 topical formulation, demonstrating a consistent and dose-proportional release. The company is also progressing with preclinical studies to assess the formulation’s performance in pain models, with the potential to address a significant market need for non-opioid pain treatments. Furthermore, MIRA shared promising preclinical results from an animal model of diabetic neuropathy, where Ketamir-2 significantly reduced neuropathic pain symptoms. These developments coincide with MIRA’s ongoing Phase I clinical trial for the oral formulation, with plans to initiate a Phase IIa trial in diabetic patients by the end of 2025. The company is also exploring the potential for expedited development pathways with the FDA for its topical formulation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.