TiGenix (NASDAQ:TIG) has joined the ranks of the biotech companies seeing stocks soar this week. The company is a biopharmaceutical company that exploits anti-inflammatory properties of stem cells to develop therapies for serious medical conditions that are not normally attended to by the medical community. The company has previously worked with the Takeda Pharmaceutical Company Ltd. (OTC:TKPYY) to develop new treatment options for patients suffering from gastrointestinal disorders.
Earlier today it was announced that Takeda will be acquiring TiGenix, a decision that has the full support of the entire Board of Directors of TiGenix. Takeda is a huge company, Japan’s largest pharmaceutical company in fact, that focuses on oncology, gastroenterology, vaccines, and neurology. So this deal is huge for TiGenix.
First off, the acquisition by Takeda of TiGenix will allow the companies to fully develop and commercialize the Cx601 treatment, which is to aid in the treatment of complex perianal fistulas in Crohn’s disease. Back in December, the Committee for Medicinal Products for Human Use, a committee from the European Medicines Agency, passed a positive recommendation for Cx601 to be marketed. A Phase III trial for US registration of the treatment has now begun.
Investors in the company seem to be showing a round of approval for the acquisition by Takeda. At the time of writing, The stock is trading at $40.74, putting the price up $16.85, or 70.53%, from the previous closing price of $23.89. The stock levels have been high all day; so far, the day’s range is between $40.39 and $41.00. In comparison, the 52-week range for the company is between $14.30 and $41.00, meaning that this is the highest the stock for the company has been over a year. The acquisition of TiGenix by Takeda is immensely benefiting the company, through the support that Takeda will be able to provide TiGenix and through the stock boost it has given the company.
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