Following a significant strategic decision, the stock value of Portage Biotech Inc. (NASDAQ: PRTG) has increased significantly, with shares rising by 124.62% to $7.30. This comes after a significant milestone in PRTG’s continuous efforts to increase shareholder value—the announcement of a contract to sell its fully owned subsidiary, iOx Therapeutics, Ltd.
Portage Biotech Inked Strategic Collaboration with Immunova
Immunova, LLC, a Connecticut-based biotechnology business, and Portage Biotech have signed a Letter of Intent (LOI). Through the negotiation of a final option agreement, Immunova or its affiliate will be able to purchase iOx Therapeutics.
Positive early-stage clinical outcomes have been produced by iOx, which focuses on the development of liposomal iNKT agonists, especially with their flagship candidate, PORT-2. This purchase supports Portage Biotech’s plan to simplify its line of business while accelerating the development of potential treatments.
PRTG is Streamlining Assets and Unlocking Shareholder Value
The decision to partner with Immunova reflects Portage Biotech’s broader efforts to optimize its assets. By selling off iOx Therapeutics, the company hopes to increase shareholder value while accelerating the clinical development of novel treatments. As PRTG looks to optimize returns via prudent asset management, this deal also marks a significant turning point in the company’s continuous assessment of its strategic options.
Portage Biotech’s Focus on Clinical Development and Funding Needs
Earlier this year, Portage Biotech had announced plans to evaluate various strategic options to extend its financial runway. The company’s Board of Directors also decided to pause further enrollment in its ADPORT-601 clinical trial for the development of adenosine antagonists, including PORT-6 and PORT-7.
This move was made in light of the company’s current funding needs and the broader market conditions for capital raising. PRTG’s commitment to exploring strategic alternatives remains steadfast, with possibilities ranging from asset sales to company mergers or restructurings, ensuring the continued evolution of the company’s pipeline and value proposition.
