4D Pharma PLC (LON: DDDD) passed a “transformational milestone” following the completion of its merger with US investment vehicle Longevity Acquisition Corporation, according to chief executive Duncan Peyton.
The transaction provides the UK group with a quote on the tech- and biotech-focused NASDAQ stock market and access to the US$14.8mln held by Longevity.
In the same announcement, investors were told the gross proceeds from a private placement of shares are expected to be just over US$25mln after Merck Sharp & Dohme Corp chipped in additional US$1mln to buy 654,023 new shares.
“Becoming a dual-listed company both in the UK and the US broadens our global reach,” said Peyton.
“In conjunction with the NASDAQ listing, the closing of the merger and concurrent fundraise give 4D pharma an additional US$40 million of capital and puts the company in a very strong financial position to execute across our robust pipeline."
The company has issued new warrants, which, if exercised, would bring in a further US$29mln of capital.
Working in the emerging area of the human microbiome (the bacteria that reside mainly in the gut), 4D has developed Live Biotherapeutics — products that contain live organisms such as human commensal bacteria.
The approach focuses on single strains to assess specific mechanisms of action targeting a defined disease pathway.
Even variations between different strains of bacteria of the same species are assessed and exploited.
Toxicity has always been a major impediment to the success of new drugs.
In developing its Live Biotherapeutics, 4D has isolated bacteria from healthy human donors which are expected to have highly attractive safety profiles.
“We believe that 4D Pharma's single strain Live Biotherapeutic approach to the microbiome holds great promise to deliver novel, efficacious and safe therapeutics to patients suffering from a variety of conditions with few alternative therapeutic options,” said Peyton.
“We continue to push the frontier for Live Biotherapeutics for the treatment of cancer, as well as additional therapeutic areas such as neurological conditions."