Arsanis subsidiary to merge with X4 Pharmaceuticals in all-stock transaction
Arsanis and privately-held X4 Pharmaceuticals announced that they have entered into a definitive merger agreement under which X4 Pharmaceuticals is expected to merge with a wholly-owned subsidiary of Arsanis in an all-stock transaction. The merger would result in a combined company operating under the X4 Pharmaceuticals name that will focus on the development and commercialization of X4's lead product candidate, X4P-001, and the advancement of X4's pipeline of treatments for rare diseases of the immune system and rare cancers. X4 Pharmaceuticals is a privately-held biopharmaceutical company developing oral, small molecule drug candidates that inhibit the binding of chemokine CXCL12 to C-X-C receptor type 4, or CXCR4, a receptor-ligand pair that plays an essential role in normal immune surveillance. X4's lead product candidate, X4P-001, is expected to enter a Phase 3 clinical trial in the first half of 2019 for the potential treatment of Warts, Hypogammaglobulinemia, Immunodeficiency, and Myelokathexis syndrome, a rare genetic, primary immunodeficiency disease where patients become susceptible to certain types of viral and bacterial infections due to genetic mutations in the CXCR4 receptor gene. X4 also has additional rare disease programs based on CXCR4 biology in its development pipeline, including programs targeting other primary immunodeficiency diseases and rare lymphomas. In addition, X4 is exploring the use of X4P-001 in immuno-oncology, having completed Phase 1b studies for the treatment of melanoma and renal cell carcinoma, or RCC, including in combination therapy, and has an ongoing Phase 2a study in RCC expected to read out in mid-2019. On a pro forma basis and based upon the number of Arsanis shares to be issued in the merger, current X4 Pharmaceuticals stockholders are expected to own approximately 70% of the combined company and current Arsanis stockholders are expected to own approximately 30% of the combined company. The actual allocation will be subject to adjustment based on each company's outstanding equity ownership and Arsanis' net cash balance at the time of closing of the merger. The transaction has been approved by the board of directors of both companies. The merger is currently expected to close in Q1 of 2019, subject to the approval of the stockholders of each company and the satisfaction or waiver of other customary conditions.