- vTv Therapeutics (NASDAQ:VTVT) is getting funding from G42 Investments.
- That includes an initial $12.5 million payment.
- The agreement has them working together on drug development.
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vTv Therapeutics (NASDAQ:VTVT) stock is taking off on Wednesday after entering into a funding and collaboration agreement with G42 Investments.
This saw G42 Investments acquire 10,386,274 shares of VTVt stock for $2.407 per share. It paid $12.5 million at closing and will pay the remaining $12.5 million on May 31, 2023.
It’s worth noting that G42 Investments could gain additional shares of VTVT stock depending on how its drug development goes. This includes any U.S. Food and Drug Administration (FDA) approval for products containing TTP399, which is an active ingredient used to treat type 1 diabetes in the United States.
An affiliate of G42 Investments will collaborate on the development of TTP399. That includes funding a Phase 3 clinical trial. The deal also has vTv Therapeutics granting G42 Investments an exclusive license to develop and commercialize pharmaceutical products containing TTP399. This covers certain areas outside the U.S. and Europe.
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Rich Nelson, the interim CEO of vTv Therapeutics, said this about the news.
“This investment into vTv will fund a substantial portion of our Phase 3 clinical trials for TTP399 in the United States and the collaboration with G42 will fund certain of the Phase 3 clinical trials that will be conducted in other territories.”
Heavy trading of VTVT stock comes alongside today’s investment news. That sees more than 27 million shares traded as of this writing. For the record, the company’s daily average trading volume is only about 229,000 shares.
VTVT stock is up 41.4% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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