Speciality biopharmaceutical company Biodel Inc (NASDAQ:BIOD), which is developing innovative treatments for diabetes, announced October 17 that proxy voting advisory firms, Institutional Shareholder Services Inc and Glass, Lewis and Company, have recommended that Biodel stockholders vote in favor of proposals at the forthcoming annual meeting of stockholders on October 24.
These include a proposal to issue Biodel’s common stock to satisfy the proposed share exchange transaction between Albireo Limited and the company.
Biodel Inc (NASDAQ:BIOD) surged 12.43% yesterday, closing at $0.66 on volume of 1.94 million shares, well above the average volume of 605.68K shares.
Biodel Inc (NASDAQ:BIOD) to combine with Albireo Limited
Albireo is developing developing elobixibat, a treatment for chronic constipation undergoing trials in Japan through licensee EA Pharma Co., Ltd., which met the primary endpoint, change in the number of weekly spontaneous bowel movements from baseline to the first treatment week compared with placebo, with high statistical significance in a Phase 3 trial.
A Phase 2 lead drug A4250 to treat Progressive Familial Intrahepatic Cholestasis (PFIC), an orphan pediatric liver disease with no approved drug treatment, is also under development by Albireo.
Accordingly, Biodel’s merger with Albireo looks promising, though it will afford the latter the opportunity to gain a listing on the NASDAQ. Note that pursuant to the share exchange Biodel stockholders are expected to own approximately 33%, and Albireo stockholders are expected to own approximately 67%, of the combined company.
Further, marquee investors such as Phase4 Ventures, TPG Biotech, TVM Capital Life Science and AstraZeneca will invest an additional $10 million prior to the closure of the transaction.
Biodel Inc (NASDAQ:BIOD) focused on Albireo transaction in Q3, 2016.
The company revealed in its third quarter report that it spent $1.5 million on costs related to the Albireo transaction. It reported a net loss of $3.1 million ($0.05 per share) during the quarter and had nil revenue. It carried $31 million in cash and cash equivalents as at June 30, 2016.
“During the third quarter, we have focused our attention on the proposed transaction with Albireo. We are enthusiastic about the proposed combination as we believe the combined company will benefit Biodel shareholders through the ownership of shares in a biopharmaceutical company with promising clinical assets and substantial upside opportunity,” said Gary G. Gemignani, Chief Executive Officer of Biodel.