Biodexa Pharmaceuticals PLC-ADR BDRX is experiencing a rough morning, with its shares plunging by 6.8% to $4.76 after the company’s announcement of a public offering of Class A Units at a lower-than-expected price. Investors seem to be reacting negatively to this news revealed in a preliminary prospectus.
The downward spiral began after the company unveiled its acquisition of the rights to tolimidone, an experimental drug originally developed by Pfizer Inc. for gastric ulcers. Despite this positive news, the stock took a significant hit, closing yesterday 83% higher following the announcement.
Breaking It Down
Biodexa Pharmaceuticals made a groundbreaking discovery, uncovering that tolimidone, an activator of the lyn kinase enzyme, could potentially be beneficial in treating Type-1 diabetes by safeguarding and stimulating insulin-producing beta cells. The company is now preparing for a Phase II study involving Type-1 diabetes patients to substantiate the drug’s efficacy.
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Additionally, Biodexa’s collaboration with Adhera includes an initial payment and future payments dependent on various milestones. The company has committed to issuing shares to Melior and Bukwang, as well as offering royalties on tolimidone sales.
The finalization of the transaction hinges on specific conditions and is projected to be completed in the fourth quarter of 2023.
Data from Benzinga Pro reveals that BDRX hit a 52-week high of $579.20 and a 52-week low of $2.26.