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      Acasti Pharma Inc. (ACST) Stock on the Rise Following Announcement of Acquisition of Grace Therapeutics - Stocks Telegraph

      By Shimrez Hyder

      Published on

      August 25, 2021

      10:57 AM UTC

      Acasti Pharma Inc. (ACST) Stock on the Rise Following Announcement of Acquisition of Grace Therapeutics - Stocks Telegraph

      Acasti Pharma Inc. (ACST) stock price was up by 3.13% as of the market closing on August 24th, 2021. This brought the price per share up to USD$0.45 at the end of the trading day. Subsequent premarket fluctuations have seen the stock increase by 5.21%, bringing it up to USD$0.48.

      ACST Stock Acquires Grace Therapeutics

      May 7th, 2021 saw ACST stock announce having entered into a definitive agreement to acquire Grace Therapeutics. Grace is an emerging biopharmaceutical company focused on developing innovative drug delivery technologies designed to treat rare and orphan diseases in order to address essential unmet medical needs. The strategic collaboration has been approved by both companies’ Boards of Directors, as well as supported by the partnering company’s shareholders through voting and lock-up agreements with ACST stock.

      Strength of Partnership

      ACST stock is confident that the planned acquisition of grace will be a lucrative and transformative transaction for both parties involved. The partnering company has a track record of developing novel drug delivery technologies and applying them to approved pharmaceutical compounds with proven safety profiles and clinical efficacy.

      Scope of Strategic Collaboration

      Grace’s proprietary technologies allow for the customization of the formulation of these marketed drugs in innovative ways that have the potential to address significant unmet medical needs in rare and orphan disease. This will be managed by facilitating the faster onset of action, improved efficacy, reduced side effects, and more convenient drug delivery. All of these measures serve to increase treatment compliance and improve patient outcomes. The company aims to make use of Section 505(b)(2) regulatory pathway under the Federal Food, Drug, and Cosmetic Act for clinical development and approval. This will substantially reduce time to market, cost, and risk.

      ACST Stock Enjoys Long-Term Security

      Furthermore, Orhpan Drug Designation from the FDA should secure seven years of marketing exclusivity in the United States after its launch. The combination will also bring Grace’s patents, which number more than 40 granted and pending patents all over the world. This tenure should provide the combined company with exclusivity through to the fiscal year 2036. The merged company expects having more than USD$60 million in cash reported on its balance sheet. This is expected to provide at least two years of operating runway.

      Future Outlook for ACST Stock

      ACST stock is poised to capitalize on the opportunities afforded to it as a result of its recently announced merger with Grace Therapeutics. The combined company is keen to leverage the cumulative resources at their disposal. Investors are hopeful that this will translate into consistent gains in shareholder value.

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