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Investing.com -- Carisma Therapeutics Inc (NASDAQ:CARM) stock jumped 9.1% following the announcement of a definitive merger agreement with OrthoCellix, a wholly-owned subsidiary of Ocugen Inc (NASDAQ:OCGN), which saw its shares rise 1.9%.
The all-stock transaction will create a Nasdaq-listed, late clinical-stage regenerative cell therapy company focused on orthopedic diseases. The combined entity will concentrate on developing OrthoCellix’s NeoCart technology, a Phase 3-ready autologous cartilage implant that uses patient cells to repair articular cartilage defects of the knee.
"We believe merging OrthoCellix with Carisma will allow us to create a publicly-traded company focused on the development of NeoCart and provide value for both Ocugen and Carisma stockholders while unlocking true market potential of NeoCart," said Dr. Shankar Musunuri, Chairman, CEO, and Co-founder of Ocugen.
The merger comes after Carisma’s evaluation of various strategic alternatives. Steven Kelly, President and CEO of Carisma, stated, "Carisma evaluated a range of strategic alternatives, and we believe this proposed transaction represents an opportunity to deliver significant value to our stockholders."
Following the completion of the merger, the combined company plans to initiate an FDA-endorsed Phase 3 clinical trial for the NeoCart technology, which aims to provide a transformative approach to cartilage repair for patients with knee articular cartilage defects.
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