Published on 22 Nov 2022 on Benzinga via Yahoo Finance

Graybug Vision Agrees To Merge With Inflammatory Disease-Focused Biopharma

Graybug Vision Inc (NASDAQ: GRAY) and CalciMedica Inc (CalciMedica) have announced a definitive merger agreement to combine the companies in an all-stock transaction.The combined company will further develop CalciMedica's lead product candidate Auxora for inflammatory diseases, such as acute pancreatitis, asparaginase-associated pancreatitis, acute kidney injury, and acute hypoxemic respiratory failure.Auxora, which modulates the immune response and protects against tissue cell injury, has been studied in four completed efficacy clinical trials, demonstrating positive and consistent clinical results and a favorable safety profile.With approximately $35 million in cash and cash equivalents anticipated from the combined company, including a private placement financing expected to occur immediately before the merger closing, the combined company is expected to have a cash runway into the second half of 2024.The proposed merger is expected to close in the first quarter of 2023.Phase 2b results in acute pancreatitis for lead product candidate Auxora expected in the second half of 2023.Graybug equity holders are expected to own approximately 29% of the combined company, and pre-merger CalciMedica equity holders are expected to own approximately 71% of the combined company.Following the merger, the combined company will be headquartered in La Jolla, California, and Rachel Leheny will serve as Chief Executive Officer of the combined company.Price Action: GRAY shares are down 30.30% at $0.66 during the premarket session on the last check Tuesday.

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