On Wednesday, OS Therapies, Inc. (OSTX) announced it has finalized an asset purchase agreement to acquire listeria monocytogenes-based immuno-oncology programs and associated intellectual property from Ayala Pharmaceuticals (ADXS). Under the terms of this agreement, OS Therapies will make a cash payment of $0.5 million and issue $7.5 million in common shares to Ayala.
This strategic acquisition encompasses a Phase 2 program for lung cancer and a Phase 1 program for prostate cancer, in addition to obtaining full ownership of intellectual property related to OS Therapies' leading asset, OST-HER2, geared towards treating osteosarcoma and other HER2-associated conditions.
It is anticipated that the transaction will be finalized within 60 days from the agreement's execution date. Concurrently, OS Therapies plans to seek Biologics Licensing Authorization for OST-HER2 specifically for osteosarcoma in the second quarter of 2025, with expectations to receive a BLA and associated Priority Review Voucher from the FDA by the end of that year.
Previously disclosed by OS Therapies, the company has successfully secured $7.1 million in funding at $4.00 per share, ensuring financial stability well into 2026, which includes fulfilling payment obligations to Ayala.
Currently, OSTX is trading on the New York Stock Exchange at $2.85, marking a 9.61 percent increase or $0.25 gain.
