Yumanity Therapeutics Completes Reverse Merger with Proteostasis Therapeutics
December 23 2020 - 9:24AM
Yumanity Therapeutics (Nasdaq: YMTX), a clinical-stage
biopharmaceutical company focused on the discovery and development
of innovative, disease-modifying therapies for neurodegenerative
diseases, today announced that its reverse merger with Proteostasis
Therapeutics, Inc. closed on December 22, 2020, following the
approval of Proteostasis shareholders. The combined company will
operate under the name Yumanity Therapeutics, Inc., and its shares
will commence trading on the Nasdaq Capital Market on December 23,
2020, under the ticker symbol “YMTX.” The $33.6 million PIPE
transaction, announced on December 15, closed concurrently with the
merger.
“Our joining the NASDAQ stock exchange through this merger marks
a transformative moment in the history of the company as we look to
deliver disease-modifying treatments to patients suffering from
neurodegenerative diseases,” said Richard Peters, M.D., Ph.D.,
President, Chief Executive Officer and Director of Yumanity. “Our
accelerating momentum will continue into 2021 as we look to deliver
clinical data from our lead program for Parkinson’s disease as well
as advance several other programs from our diverse portfolio of
assets.”
Pursuant to the merger, all of Yumanity’s outstanding equity was
converted into Proteostasis common stock and securities convertible
into or exercisable for Proteostasis common stock. Immediately
following the completion of the merger, the former stockholders of
Yumanity held approximately 70.3% of the outstanding fully-diluted
shares of common stock of the combined company. Proteostasis
shareholders and optionholders retained an ownership interest
representing approximately 29.7% of the outstanding fully-diluted
shares of common stock of the combined company. Proteostasis
shareholders as of immediately prior to the merger also received
contingent value rights entitling them to share in proceeds, if
any, from the monetization of the Proteostasis cystic fibrosis
assets, though there can be no assurances any such monetization
will occur. The combined company will have nine directors including
two Proteostasis directors, David Arkowitz and Kim Drapkin, and the
existing Yumanity Directors; Dr. Tony Coles will serve as executive
chairperson.
Yumanity’s development pipeline consists of the following
programs:
- Yumanity’s lead product candidate, YTX-7739, which is currently
in Phase 1 clinical development for the treatment and disease
modification of Parkinson’s disease.
- Additional wholly owned programs, including YTX-9184, expected
to enter the clinic next year for the treatment of dementia with
Lewy bodies, as well as programs for amyotrophic lateral sclerosis
(ALS or Lou Gehrig’s disease), multi-system atrophy, Alzheimer’s
disease, and other neurodegenerative diseases are also in
development.
- Programs for amyotrophic lateral sclerosis and frontotemporal
lobar dementia (FTLD), which are being developed as part of a
strategic research collaboration and license agreement with
Merck.
- Yumanity plans to explore strategic alternatives for the
Proteostasis assets.
About Yumanity Therapeutics Yumanity
Therapeutics is a clinical-stage biopharmaceutical company
dedicated to accelerating the revolution in the treatment of
neurodegenerative diseases through its scientific foundation and
drug discovery platform. The Company’s most advanced product
candidate, YTX-7739, is currently in Phase 1 clinical development
for Parkinson’s disease. Yumanity’s drug discovery platform is
designed to enable the Company to rapidly screen for potential
disease-modifying therapies by overcoming toxicity of misfolded
proteins in neurogenerative diseases. Yumanity’s pipeline consists
of additional programs focused on dementia with Lewy bodies, multi-
system atrophy, amyotrophic lateral sclerosis (ALS or Lou Gehrig’s
disease), frontotemporal lobar dementia (FTLD), and Alzheimer’s
disease.
For more information, please visit www.yumanity.com.
Yumanity Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding: future
product development plans and projected timelines for the
initiation and completion of preclinical and clinical trials and
other activities; the potential for the results of ongoing
preclinical or clinical trials and the efficacy of Yumanity’s
product candidates; future product development and regulatory
strategies, including with respect to specific indications; and
Yumanity’s plans for the Proteostasis assets. The use of words such
as, but not limited to, “believe,” “expect,” “estimate,” “project,”
“intend,” “future,” “potential,” “continue,” “may,” “might,”
“plan,” “will,” “should,” “seek,” “anticipate,” or “could” and
other similar words or expressions are intended to identify
forward-looking statements. Forward-looking statements are neither
historical facts nor assurances of future performance. Instead,
they are based on Yumanity’s current beliefs, expectations and
assumptions regarding the future of Yumanity’s business, future
plans and strategies, clinical results and other future conditions.
New risks and uncertainties may emerge from time to time, and it is
not possible to predict all risks and uncertainties. No
representations or warranties (expressed or implied) are made about
the accuracy of any such forward-looking statements.
Such forward-looking statements are subject to a number of
material risks and uncertainties including but not limited to: (i)
the outcome of any legal proceedings that may be instituted against
the parties and others related to the merger agreement;(ii)
unanticipated difficulties or expenditures relating to the merger,
the response of business partners and competitors to the
announcement or completion of the merger, and/or potential
difficulties in employee retention as a result of the announcement
or completion of the merger; (iii) the combined company’s listing
on the Nasdaq Capital Market; (iv) the adequacy of the combined
company’s capital to support its future operations and its ability
to successfully initiate and complete clinical trials; (v) the
nature, strategy and focus of the combined company; (vi) the
difficulty in predicting the time and cost of development of
Yumanity’s product candidates; (vii) Yumanity’s plans to research,
develop and commercialize its current and future product
candidates, including, but not limited to, YTX-7739; (viii) the
timing of initiation of Yumanity’s planned preclinical studies and
clinical trials; (ix) the timing of the availability of data from
Yumanity’s clinical trials; (x) the timing of any planned
investigational new drug application or new drug application; (xi)
the risk of cessation or delay of any ongoing or planned clinical
trials of Yumanity or its collaborators; (xii) the clinical
utility, potential benefits and market acceptance of Yumanity’s
product candidates; (xiii) Yumanity’s commercialization, marketing
and manufacturing capabilities and strategy; (xiv) Yumanity’s
ability to identify additional product candidates with significant
commercial potential and to expand its pipeline in
neurodegenerative diseases; (xv) the risk that Yumanity may not
realize the intended benefits of its drug discovery platform; (xvi)
developments and projections relating to Yumanity’s competitors and
its industry; (xvii) the impact of government laws and regulations;
(xviii) the impact of public health epidemics affecting countries
or regions in which Yumanity has operations or does business, such
as the COVID-19 pandemic, (xix) the timing and anticipated results
of Yumanity’s preclinical studies and clinical trials and the risk
that the results of Yumanity’s preclinical studies and clinical
trials may not be predictive of future results in connection with
future studies or clinical trials; (xx) the timing and outcome of
Yumanity’s planned interactions with regulatory authorities; (xxi)
Yumanity’s ability to protect its intellectual property position;
(xxii) Yumanity’s estimates regarding future revenue, expenses,
capital requirements and need for additional financing; and (xxiii)
those risks detailed in Proteostasis’ definitive proxy
statement/prospectus/information statement filed with the
Securities and Exchange Commission on November 12, 2020, as well as
discussions of potential risks, uncertainties, and other important
factors in Yumanity’s subsequent filings with the Securities and
Exchange Commission. Any forward-looking statement speaks only as
of the date on which it was made. None of Yumanity, nor its
affiliates, advisors or representatives, undertake any obligation
to publicly update or revise any forward-looking statement, whether
as result of new information, future events or otherwise, except as
required by law.
ContactsInvestors:Burns
McClellan, Inc.John Grimaldijgrimaldi@burnsmc.com (212)
213-0006
Media:Burns McClellan, Inc.Ryo Imai / Robert
Flamm, Ph.D.rimai@burnsmc.com / rflamm@burnsmc.com (212)
213-0006
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