Portage Biotech acquires stake in Compedica for $5 million

DOVER, Del. - Portage Biotech Inc. (NASDAQ: PRTG), an immuno-oncology company with a market capitalization of $13.84 million, has entered into a Subscription Agreement with Compedica Holdings Limited, acquiring a significant stake as part of a strategic alliance. The transaction, completed on Sunday, involved Portage issuing 625,000 ordinary shares at $8.00 each in exchange for 1,165,501 shares of Compedica, priced at $4.29 per share, totaling a $5 million valuation. According to InvestingPro data, PRTG’s stock has shown remarkable momentum, delivering a 102% return over the past six months, and analysis suggests the stock is currently trading near its Fair Value.

Following the deal, Compedica now holds 27.4% of Portage’s issued and outstanding ordinary shares. This investment is aimed at supporting the development and commercialization of Compedica’s medical device technology, particularly the OptiPulse active therapy system, designed to treat Diabetic Foot Ulcers (DFUs). Portage enters this partnership from a position of financial stability, with InvestingPro analysis showing the company maintains more cash than debt on its balance sheet and a healthy current ratio of 3.08x, indicating strong short-term liquidity.

Compedica’s CEO Jamie Gibson expressed that the partnership with Portage provides the necessary support to advance the company’s scale-up efforts and commercial launch in North America, expected in the first half of 2026. The DFU market in the US is valued at over $4 billion, and the OptiPulse device is anticipated to set a new standard for DFU treatment, potentially improving patient outcomes and reducing insurer costs. The results from Compedica’s randomized clinical trial are expected to be published in the fourth quarter of 2025.

Alexander Pickett, CEO of Portage, highlighted the unmet medical need in treating the 18.6 million people affected by DFUs worldwide, noting the disease’s severe mortality rate. Compedica’s novel approach aims to alleviate the burden of care and enhance patient outcomes.

The agreement also includes a funding commitment from Portage, stipulating that at least 50% of net funds from any future equity funding arrangement will be used to subscribe for new Compedica equity at the agreed share price. Additionally, Compedica has been granted registration rights for resale purposes and the right to have an observer at Portage board meetings.

This strategic alliance does not involve broker fees, and Compedica is not subject to any lock-up arrangement. Both companies have expressed their enthusiasm for the partnership, which they hope will be a cornerstone for future growth and success in the medical device sector. InvestingPro subscribers can access 12 additional investment tips for PRTG, along with comprehensive financial metrics and expert analysis to better evaluate this strategic partnership’s potential impact. Notably, while the company’s stock has shown strong recent performance, analysts note its high price volatility, making it crucial for investors to conduct thorough due diligence.

The information in this article is based on a press release statement from Portage Biotech Inc.

In other recent news, Portage Biotech Inc. has announced promising preclinical data for its mesothelioma treatment candidate, PORT-7. The data, presented at the European Lung Cancer Congress in Paris, revealed that PORT-7, both alone and in combination with an anti-PD1 antibody, significantly inhibited tumor growth in a mesothelioma murine model. The studies showed more than 90% inhibition of tumor growth when PORT-7 was used alongside the anti-PD1 antibody. Additionally, there was a notable infiltration of immune effector cells in the tumors, indicating a potential advancement in treatment for mesothelioma patients. Portage Biotech is also progressing with the dose escalation of another compound, PORT-6, which targets the A2A adenosine receptor. The company plans to combine PORT-6 with PORT-7 in a clinical trial to counteract adenosine-induced immunosuppression in the tumor microenvironment. This innovative approach may enhance the efficacy of immunotherapy for solid tumors. Preparations for a first-in-human clinical trial of PORT-7 are currently underway, marking a significant milestone in the development of new cancer treatments.

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