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      Here is why the Anchiano Therapeutics Ltd. (ANCN) stock has soared - Stocks Telegraph

      By ST Staff

      Published on

      March 17, 2021

      9:58 AM UTC

      Last Updated on

      October 21, 2021

      9:29 AM UTC

      Here is why the Anchiano Therapeutics Ltd. (ANCN) stock has soared - Stocks Telegraph

      Anchiano Therapeutics Ltd. (NASDAQ: ANCN) stock soared by 5.37% to the current price of $4.71.

      ANCN has finally merged with Chemomab Ltd.

      The reason for this price increase can correlate with the much-anticipated news of the delayed merger between the two Israeli-based companies. The merger took place on the 15th of March, as was announced by Anchiano Therapeutics Ltd. (ANCN) by sending invitation letters to shareholders about the special meeting to approve the merger.

      Why ANCN stock news did not fare well in the past

      Anchiano Therapeutics Ltd (ANCN) has been developing major news in the past, but the report did not sustain its hype and kept dying out. One of the reasons is because the merger was expected to proceed earlier into the year 2021, and before the merger, the biotech company released news about initial trials of cancer research which were then discontinued in the second phase. The reason so is because the data analysis of treatment through gene therapy suggested that the treatment of bladder cancer had very little probability of complete responses in the patients

      What’s the next plan of action after the merger?

      Now that the merger has taken place, the 16-year old company, AnchianoTherapeutics Ltd (ANCN), will switch its trade ticker to “CMMB” and its public company name to Chemomab Therapeutics Ltd. After this merger, Chemomab Ltd would become the majority holder of the merged company. They will focus on the PIPE financing to advance CM-101 into Phase 2 clinical trials in rare fibrotic indications.

      The news that indicates to support this financing is that the merged companies have also announced a private investment of $45.5 million. This personal investment is a combination of original and new investors who now see hope in the ANCN’s positive stock movement.

      When we look at the details of the financing, it indicates the sale of 41,908,232 ADSs. The warrants that accompany these shares are more than 4 million (4,190,819 to be precise). The penny-stock price at which they were sold is $1.08433 per share, which is also the warrant’s exercise price. One thing to note here is that the pre-reverse split will take effect immediately before the merger’s closing.

      Why are CM 101 phase-2 trials significant?

      Furthermore, the merged-company can now focus on the trial inceptions for CM 101. CM 101 phase 2 trials will focus on orphan indications of inflammatory-fibrotic diseases. This is significant for investors from the point-of-view of being that the specific diseases targeted in this trial are sclerosing cholangitis (PSC) and systemic sclerosis both damage multiple organs, and both have unmet needs with the patients suffering from debilitating pain due to no FDA-approved diseases.

       Positive news of the success of the phase2 trial can lead to the possibility of FDA approval, which will correspond to a substantial uplift in the stock-movement of the then-merged Chemomab Therapeutics Ltd.

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