Biotech Values

[DewDiligence]

Aravive Biologics (effectively) reverse-merges into VSAR:

https://finance.yahoo.com/news/versartis-enters-merger-agreement-aravive-120000294.html

Aravive Biologics is a privately held clinical stage biopharmaceutical company developing novel, highly selective therapies designed to treat serious cancers and certain fibrotic diseases.

Aravive’s lead program is focused on inhibition of the GAS6-AXL signaling axis, which is a known target associated with the growth and proliferation of multiple tumor types.

…Aravive has established clinical proof-of mechanism for its first-in-class drug candidate, demonstrating full GAS6 neutralization with AVB-S6-500, and plans to initiate an expanded clinical development program combining it with standard of care therapies in patients with a number of tumor types, initially in ovarian cancers in the second half of 2018.

… Following the proposed merger, Versartis and Aravive equity holders are each expected to own approximately 50 percent of the combined company.

Even though each company’s shareholders will own 50% of the merged company, the clinical direction of the merged company is clearly dictated by Aravive, and hence this is effectively a reverse merger.