Gaithersburg, Va.-based Altimmune, Inc. (NASDAQ:ALT) rose after the company announced to acquire Spitfire Pharma, which will add a NASH drug candidate to the company's portfolio.
Spitfire, a portfolio company of Presidio Partners, was founded by John J. Nestor, Jr., Ph.D. and Velocity Pharmaceutical Development, LLC, for the sole purpose of developing the NASH drug candidate, SP-1373.
Spitfire shareholders will receive an upfront payment of $5 million in Altimmune common stock and will be eligible to receive an additional $8 million in future regulatory and clinical milestones payable in cash or common stock.
Spitfire shareholders are also eligible to receive up to $80 million in sales-based milestones. The issuance of common stock to satisfy the milestone payments is subject to stockholder approval in accordance with Nasdaq rules.
Said CEO Vipin Garg,"NASH is a significant unmet need. There are no approved treatments available, and prevalence is growing worldwide as a consequence of an expanding obesity epidemic. Compelling pre-clinical data generated by Spitfire suggests that ALT-801 could reverse obesity, a primary cause of NASH, thereby reducing excess liver fat, inflammation and fibrosis associated with the disease.
"The addition of this exciting product candidate to our portfolio is a transformative transaction for Altimmune."
ALT-801 builds on the Company’s liver disease expertise being developed in Altimmune’s HepTcellTM program for treating chronic hepatitis B and continues to build and leverage the Company’s deep knowledge of developing novel peptide-based therapeutics.
Shares popped 32 cents, or 12.8%, to $2.82
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