On May 5 George Soros took a 5.17% stake in the company. Tim Miller, CEO of PlasmaTech, says Soros and other investment groups continue to recognize the power of gene therapeutics. Many view it as the potential "medicine of the future," he added.
For most investors, this type of move would be more than enough. However, just one day later, the stock jumped another 36% in pre-market trading after PlasmaTech announced that it would acquire Abeona Therapeutics in an all-stock deal.
Miller, previously Abeona's president and CEO, said he's hoping the merging of the companies will lead to increased licensing opportunities and more treatments in the rare disease space.
Specifically, the company is working on a treatment for Sanfilippo syndrome, which is a "devastating" neuromuscular disease mainly found in children, he said. Sadly, most don't live long, with 70% failing to reach the age of 13. The company is hoping to start clinical trials later this year for its treatment, he explained.
When Miller was working at Abeona Therapeutics, the company was focused on developing gene therapies for children with generic disorders. At PlasmaTech, the company is more known for its self-therapy treatments. Between the two, the newly formed company should be able to grow its product pipeline, address a larger market and treat more diseases, he said.