Bullish indicating open at $55-$60, IPO prices at $37
TEL AVIV - PainReform Ltd. (NASDAQ:PRFX), a micro-cap biotech company with a market capitalization of $2.7 million and currently trading at $1.35 per share, has completed its previously announced investment in LayerBio, Inc., acquiring a majority equity stake in the Boston-based biotechnology company, according to a press release statement issued Wednesday. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt.
The transaction positions PainReform to advance clinical trials of OcuRing-K, LayerBio’s lead investigational product designed to control pain and inflammation following cataract surgery. The product is a biodegradable intraocular ring that delivers Ketorolac, an anti-inflammatory drug, during cataract procedures. While the company maintains a solid current ratio of 1.81, InvestingPro analysis indicates the company is rapidly burning through its cash reserves, which could impact its development timeline.
The companies aim to address challenges in the current post-cataract surgery treatment regimen, which typically requires patients to administer multiple eye drops daily. This approach can be particularly difficult for elderly patients and may result in inconsistent drug delivery.
The U.S. cataract surgery market is valued at over $3 billion, with approximately 4.5 million procedures performed annually, according to the release.
OcuRing-K provides a single-application solution that eliminates the need for patient-administered drops. The biodegradable implant is inserted during surgery and delivers medication directly to the surgical site over an extended period.
Dr. Ken Mandell will continue as LayerBio’s Chief Executive Officer. A Harvard-trained ophthalmologist, Mandell is the founder of LayerBio and co-inventor of TYRVAYA, an approved treatment for dry eye disease.
PainReform and LayerBio plan to advance OcuRing-K through the next stage of clinical development in the United States, with potential applications beyond cataract surgery, including glaucoma, corneal transplants, and anti-infective treatments. With the stock down over 80% in the past year and an overall "WEAK" Financial Health Score according to InvestingPro, investors should carefully monitor the company’s progress. For comprehensive analysis and additional insights, including 8 more ProTips, consider upgrading to InvestingPro.
In other recent news, PainReform Ltd. has announced a strategic investment in LayerBio Inc., a biotechnology company based in Boston. This agreement allows PainReform to acquire a majority equity stake in LayerBio, as well as a majority position on its board, with a total investment of up to $3 million. The investment is contingent on the achievement of certain development milestones. PainReform plans to make an initial investment of $600,000 upon the closing of the deal, with the remaining funds to be provided in tranches as LayerBio meets specific development goals. This move is part of PainReform’s strategy to expand into the ophthalmology sector, focusing on non-opiate treatments for ophthalmic surgery. The investment is expected to bolster PainReform’s position in the biotechnology industry, offering potential growth opportunities. These developments highlight PainReform’s ongoing efforts to diversify its portfolio and strengthen its market presence.
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