Israeli Enlivex and Bio-Blast will merge

The drug company Enlivex, which is developing a treatment for dangerous immune system overheating, has announced plans to merge into Bio-Blast, a company on the Nasdaq-listed, which is developing treatment for rare diseases, but since its IPO in 2014, it has been unable to promote its activity.

The company is currently traded at a value of $ 4 million (after losing 98% of its value since its IPO in 2014), while Enlivex was worth $ 100 million in its last private financing round. Under the deal, Enlivex shareholders will receive 96% of the company. The transaction also includes a mechanism according to which if the products of BioLast are traded to another company, any consideration of such a transaction will be distributed equally between the original shareholders of Bio-Blast and Enlivex.
The company was founded in 2012, and already raised $ 35 million in 2014, at a company value of $ 156 million after money, and its leading product, Trehalose, is designed to treat rare muscle diseases by preventing the accumulation of abnormal proteins in the body .
The Company carried out a number of small experiments, without a control group, and achieved reasonable results. However, according to sources who followed Ubalest during the period of its operations, the company encountered difficulties in organizational culture and financing.
Bio-Blast was unable to raise capital again during a period that was bad for biotech between the end of 2015 and the beginning of 2016 and has lost the attention of investors who have been flooded by attractive young biotech companies starting in 2017.
Her recruitment attempt in 2017 did not succeed. Megiddo again took ownership of the company's management a few months ago, in order to sell its operations. The current transaction is chosen from where it gives value to the skeleton, along with potential for a potential transaction from the original product.