Kicking off 2019 with a new merger is Flex Pharma (NASDAQ:FLKS), a Boston, Massachusetts-based biotechnology company. And it’s paying off. FLKS stock is up nearly 40% today, making it a Yahoo Finance trending ticker of the day.
Flex Pharma, the FLKS Stock, and a New Merger
On Friday, January 4th, Flex Pharma (founded in 2014) announced plans to merge with Salarius Pharmaceuticals LLC. The latter is a privately-held clinical-stage oncology company. “After completing a comprehensive and highly competitive selection process,” explains Flex Pharma CEO Dr. William McVicar, “we are confident that the proposed transaction with Salarius offers the best opportunity for significant near- and long-term value creation.”
The market seems to agree. According to Yahoo Finance, as of 2:16 PM, the FLKS stock is up 36.98%. Its trading price is $0.526. Earlier in the trading session, the stock was up more than 40%.
The aim is to quicken the clinical development of a string of drugs created by Salarius Pharmaceuticals. These drugs target rare, orphan cancers, for which there is no course of treatment. “We were impressed by the compelling science supporting Salarius’ novel drug, as well as the company’s strong financial position and management team,” said Dr. McVicar.
Once the deal is complete, shareholders of Flex Pharma will own just over 19% of the integrated company, a move that likely spurred the nearly 40% jump in FLKS stock today. It’s important to mention, however, that once the deal is over, Flex Pharma will have a new name, Salarius Pharmaceuticals, Inc. It will then act under Salarius’ current management team, under the leadership of CEO David Arthur.
If developments in the pipeline of drugs occur as a result of this merger, it will likely be significant news in the health industry. News that health investors, of all people, should pay attention to. And why? Well, because, as mentioned, these targeted cancers currently offer no course of treatment. It would be (to say the least) revolutionary.
What do you think of the merger? On another note, do you think FLKS stock can surpass +40% before the closing bell rings? Let us know in the comments below!
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