Aeglea Biotherapeutics (NASDAQ:AGLE) stock has skyrocketed on news that it is acquiring Spyre Therapeutics, a private biotechnology company focused on advancing a pipeline of antibody therapeutics for the treatment of inflammatory bowel disease (IBD).
Shares of the company powered 482.8% higher at US$0.62 on Thursday morning.
The acquisition adds Spyre’s two parallel lead programs featuring the antibodies SPY001 and SPY002 targeting a4b7 and TL1A, respectively, to Aeglea’s portfolio.
Both lead programs are expected to enter into clinical studies in 2024, with data for SPY001 expected by the end of 2024.
"Our management and our Board of Directors thoroughly explored numerous strategic alternatives and believe this acquisition of Spyre provides a phenomenal outcome for our stockholders," said Aeglea CFO Jonathan Alspaugh.
"Spyre's approach to therapeutics development aims to transform the current treatment experience for individuals living with IBD. The company is making rapid progress advancing their two parallel lead programs into the clinic, and we believe these programs will enable us to capture a sizable share of the growing IBD market."
Concurrent with the acquisition, Aeglea announced an oversubscribed $210 million private investment.
At the close of the acquisition of Spyre, the company is expected to have about $220 million in cash and cash equivalents to fund its operations into 2026.
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