Aeglea BioTherapeutics, Inc. (NASDAQ: AGLE), a clinical-stage biotechnology company has successfully acquired Spyre Therapeutics, a biotechnology company that focuses on creating antibody treatments for inflammatory bowel disease (IBD). The acquisition was made possible through a definitive agreement. Aeglea obtained Series A non-voting convertible preferred stock, resulting in a remarkable $210 million in gross proceeds.
The funds obtained from the private placement will be utilized to advance Spyre’s IBD product portfolio and support its operations until 2026.
Spyre’s primary programs, which target a4b7 and TL1A, are anticipated to enter clinical studies in 2024. By acquiring Spyre and securing financing, Aeglea gains immediate access to public capital markets, aiming to accelerate research and development efforts for their biologics pipeline.
IBD is a condition that leads to long-term inflammation in the digestive tract, affecting around 1.7 million individuals in the United States. The global market for IBD, including conditions like Crohn’s disease and ulcerative colitis, is projected to exceed $29 billion by 2028.
Earlier this year, Aeglea BioTherapeutics enlisted the services of Wedbush Securities to explore strategic alternatives after disappointing interim results from the Phase 1/2 trial of pegtarviliase for Classical Homocystinuria.
The results from the third cohort (1.35 mg/kg) did not demonstrate a consistent reduction in homocysteine levels. Further analysis revealed that participants in the cohort developed anti-drug antibodies.
Price Action: In response to these developments, Aeglea BioTherapeutics’ stock (AGLE) experienced a significant surge in value, closing higher by 328.60% at $0.45 on Thursday.