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Advaxis Jumps on Deal to Be Bought by Biosight

Advaxis shares advanced after the company agreed to be purchased by peer biotech Biosight of Israel.
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Advaxis  (ADXS) - Get Advaxis, Inc. Report shares were higher Monday after the company agreed to be purchased by peer biotech Biosight of Lod, Israel, for stock.

At closing, Biosight holders will own 75% of the company and Advaxis holders will own 25%.

Advaxis, Princeton, N.J., recently traded at 70 cents a share, up 48%. It had gained 5% in the six months through Friday.

The combined company will be named Biosight Therapeutics and trade on Nasdaq with the ticker symbol BSTX.

“The proposed merger will create a public company that will prioritize the clinical advancement and commercialization of Biosight’s lead product, aspacytarabine,” the companies said. That drug treats acute myeloid leukemia.

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The new company is expected to have some $50 million cash, cash equivalents and marketable securities. The deal is expected to close in the second half, subject to conditions including regulatory clearances and votes of holders of both companies.

In other healthcare news, Iterum Therapeutics  (ITRM) - Get Iterum Therapeutics Plc Report said Friday that it received a letter from the FDA saying that deficiencies in its treatment for urinary-tract infections were found.

The Food and Drug Administration letter stated that as “part of their ongoing review of the company’s new drug application for sulopenem etzadroxil/probenecid, the agency has identified deficiencies that preclude the continuation of the discussion of labeling and post-marketing requirements/commitments at this time,” Iterum said.

Also last week, Anavex Life Sciences  (AVXL) - Get Anavex Life Sciences Corp. Report reported progress in a Phase 2 trial of a Parkinson’s drug, Anavex2-73.

JonesTrading analyst Soumit Roy raised his price target on the New York company to $50 from $35, affirming a buy rating.