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Forte Biosciences partners with Tocagen to advance clinical studies

Forte Biosciences partners with Tocagen to advance clinical studies
Forte Biosciences partners with Tocagen to advance clinical studies
Forte Biosciences, Inc., a biotechnology company developing a live biotherapeutic for treating inflammatory skin diseases, has reportedly inked a definitive merger agreement with Tocagen Inc. Under the terms of the agreement, Tocagen will be merged with Forte in an all-stock transaction.

Moreover, the merged firm will be focusing on advancing Forte's clinical studies in inflammatory skin diseases, comprising atopic dermatitis. After stake stockholder approval, the joint company is also anticipated to operate under the brand name Forte Biosciences and trade on the Nasdaq Capital Market with the ticker symbol FBRX.

Paul Wagner, CEO and President, Forte, said that this merger helps the company to become a global frontrunner in inflammatory skin diseases with the financing required to advance its pipeline towards regulatory authorization and commercial launch.

Wagner added that the company's advisors and team are committed to providing novel treatment options, specifically for pediatrics with atopic dermatitis, for which only a few treatment options exist. Forte is looking forward to delivering novel treatment options for atopic dermatitis with this merger.

Marty J. Duvall, CEO of Tocagen, said that after a comprehensive review of strategic alternatives, the company believes that this merger is in the best interest of Tocagen's shareholders and has the potential to offer immediate as well as long-term value to the stockholders.

Duvall added that the dedication and strength of the Forte leadership team, integrated with their extremely differentiated technology platform and passionate assistance from top clinicians, offers a powerful foundation for future success for the company's stakeholders.

Reportedly, an investor syndicate that consists of BVF Partners LP, Alger, and OrbiMed have inked security purchase agreement to invest USD 14 million in the joint company, subject to customary conditions.

Sources cite that this funding would help the joint company to advance clinical programs, including lead asset FB-401, and is projected to close instantly preceding to the completion of this merger. The overall cash balance of the joint company following the closing of the financing and merger is expected to be around USD 25 million.

Source Credit - https://www.prnewswire.com/news-releases/tocagen-and-forte-biosciences-announce-merger-301008033.html