MGEN remained the highest traded stock in the market yesterday as it got bullish on the acquisition of the biotech firm.
Miragen Therapeutics, Inc. (MGEN) made a major move on Wednesday deciding upon its future with the acquisition of Viridian Therapeutics, Inc. The stock rallied in the premarket after the company disclosed that it has completed the acquisition of the biotech firm.
Viridian is a privately held biotech firm focused on the development of new treatments for patients with diseases who are not served under today’s therapies.
Shares of Miragen doubled in the premarket before it opened the trading session at $1.15 compared to the previous close of $0.51. The stock traded at the day’s high of $1.36, breaking the 4-months high record. MGEN was pushed by the massive trading volume as it remained the top ranked stock in the market with a volume of almost 267 million.
After having a remarkable day in the market Miragen stock closed at $1.26 up by 142.35%.
With the following acquisition agreement, Miragen Therapeutics has also signed a new definitive agreement with several accredited institutional investors for the sale of Series A non-voting convertible preferred stock. The sale of Series A preferred stock will take place in a private placement to a group of investors led by Fairmount Funds Management LLC, which includes several other investors.
The company expects gross proceeds of almost $91 million from the private placement, excluding offering expenses and placement agent fees. Miragen intends to use the proceeds to advance clinical studies of VRDN-001.
The Chairman of the Board of Directors of Miragen, Jeffrey S. Hatfield commented that VRDN-001 has the potential to become a meaningful treatment option for patients suffering from TED.
Talking about the acquisition of Viridian Therapeutics, Hatfield stated:
“After a thorough evaluation of strategic alternatives, the Board of Directors of miRagen believes this acquisition represents the highest-potential value creation opportunity for miRagen’s stockholders. My sincere thanks and appreciation to our Board members and management team, both past and present, along with our investors for their support and commitment.”
The company is very optimistic about the potential of its lead candidate, VRDN-001 that will treat patients with TED. At the moment, VRDN-001 is pending feedback from regulatory authorities. Miragen anticipates beginning the Phase 2 trials of VRDN-001 in TED in 2021.
Viridian has previously licensed VRDN-001 worldwide rights to ImmunoGen, Inc. for the development and commercialization of the product. In parallel to VRD-001, Viridian initiated the VRDN-002 program for the treatment of TED patients to observe solubility to obtain the lowest possible injection volume.
With the advancing development of VRDN-002, Miragen Therapeutics, Inc. (MGEN) plans to file an Investigational New Drug application for VRDN-002 in the next year.