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2024-09-23 22:50
Shares of Ventyx Biosciences (NASDAQ:VTYX) jumped 8% in morning trading Monday on news that Sanofi (NASDAQ:SNY) has made a $27M strategic investment in the company in exchange for a right of first negotiation related to its neuroinflammatory disease drug candidate VTX3232.
Under the deal, Sanofi will buy 70,601 of Venytx’s Series A non-voting convertible preferred stock, which each share initially convertible to 100 common shares. The as-converted price of the investment is $3.8243 per common share. The deal is expected to close on Sept. 23.
As part of the deal, Sanofi will also receive an exclusive right of first negotiation related to certain VTX3232 program rights. Ventyx expects to report Phase 2a data on the drug in the treatment of early Parkinson’s disease and Phase 2 data for patients with obesity and additional cardiometabolic risk factors in 2025, according to a statement.
Ventyx added that proceeds from the investment, along with its current cash and equivalents position, are expected to be sufficient to fund operations into at least the second half of 2026.