- The IMRA stock jumped over 40 per cent in the morning trading on October 14.
- The trading volume of the stock was around 11 million during drafting.
- IMARA Inc. entered into a merger agreement with a clinical-stage precision oncology firm.
The stocks of healthcare firm, IMARA Inc. (NASDAQ: IMRA) were among the top percentage gainers in the morning trading on Friday, October 14, after the company made a significant announcement on October 13, after the market close.
The company said after the closing bell on Thursday that it has agreed to a merger agreement with another firm, following which its stock price jumped more than 40 per cent on Friday, October 14.
Let's discuss the details of the merger agreement in detail, before viewing the recent stock performance of the pharmaceutical firm.
What's in the merger agreement?
IMARA Inc. is a pharmaceutical firm that primarily focuses on the development and marketing of novel therapeutics for patients who are experiencing severe health conditions.
The Boston, Massachusetts-based company said on October 13 that it has entered into a definitive merger agreement with a clinical-stage precision oncology firm, Enliven Therapeutics, Inc. Enliven specializes in discovering and developing next-gen small molecule kinase inhibitors.
The companies have agreed to merge their businesses in an all-stock deal. The combined entity would be focusing to advance the precision oncology firm's pipeline of product candidates.
According to the announcement, if the merger happens, the combined firm would trade on the Nasdaq Global Select Market under the stock symbol of ELVN. The conclusion of the merger would depend on getting approval from the stockholders of both companies.
Meanwhile, Enliven aims to raise around US$ 165 million in a private financing round that would be co-led by new investors Fairmount and Venrock Healthcare Capital Partners, the release showed.
In addition to that, the financing round would also include the participation of additional new investors like Fidelity Management & Research Company, RA Capital Management, etc.
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The trading price of the IMRA stock was up 40.31 per cent at 9:36 am ET on Friday, October 14, to trade at US$ 3.6201, while its volume was more than 11.46 million. In the prior session, its closing price was US$ 2.58.
Exploring its financials for the previous year, the US$ 88.45 million market cap company's net loss totaled US$ 51.38 million. In fiscal 2022, the pharmaceutical firm incurred a net loss of US$ 49.21 million.
During its fiscal 2021 earnings release, the company said that it expects its research and development expense to be between US$ 60 million and US$ 65 million in fiscal 2022.