Advaxis, Inc. (ADXS) stock prices skyrocketed by a massive 41.25% shortly after market trading commenced on July 6th, 2021, bringing it up to USD$0.667 early on in the trading day.
Merger with Biosight
July 6th, 2021 saw the company announce its definitive merger agreement with Biosight Ltd, which will see shareholders of Biosight become majority holders of the combined company upon the closing of the transaction. The resulting entity will be a public company, with a focus on the clinical advancement and commercialization of Biosight’s lead product, BST-236. As of closing, the combined company forecasts a solid liquidity position with roughly USD$50 million in cash, cash equivalents, and marketable securities. The closing of the transaction is expected for the second half of 2021, with the combined company being renamed Biosight Therapeutics, to be traded on the Nasdaq Capital Market under the BSTX ticker symbol.
Aspacytarabine
The company anticipates topline results from its ongoing Phase 2 trial of aspacytarabine within 12-18 months. Enrollment has been completed for the trial of first-line therapy in AML patients who cannot undergo traditional chemotherapy. Recent data indicated complete remission rates of 39% across all evaluable patients, with 63% of cases with negative minimal residual disease and median overall survival of 10 months.
R&D Costs
Research and development costs for the second quarter of fiscal 2021 were reported at USD$4.34 million, up from the USD$3.92 million for the prior year quarter. The year-over-year difference was largely attributable to the winding down of some legacy studies. Further compounding the difference were losses on disposal of research-related property and equipment in connection with the termination of the office lease at ADXS’s former location.
Solid Liquidity Position
ADXS reported USD$48.1 million in cash and cash equivalents as of April 30th 2021, with the company confident that it is enough to fund its obligations as they arise. The solid liquidity position will see the ordinary course of the business through to the third fiscal quarter of 2023.
Future Outlook for ADXS
Armed with a solid liquidity position and a lucrative merger, ADXS is poised to capitalize on the opportunities afforded to it. The company is keen to facilitate the commercialization and proliferation of BST-236 in order to usher in further growth.
