Closely-held AUM Biosciences, which is advancing a broad portfolio of precision oncology therapeutics, entered into a definitive business combination agreement with Mountain Crest Acquisition Corp. V (NASDAQ:MCAG).
The combined company will operate under a holding entity to be formed as a Cayman Islands exempted company and intends to trade on NASDAQ under the ticker symbol, AUMB.
The transaction reflects a pre-money equity value of $400-million for AUM and is expected to close in the first quarter of 2023. The transaction is expected to provide approximately $69-million of cash held in Mountain Crest’s trust account, assuming no redemptions.
On closing, Vishal Doshi, CEO of AUM will continue as CEO of the combined company. “This merger allows AUM to further continue its focus on developing our scientifically differentiated portfolio,” he said in a statement. “We are poised to achieve multiple development milestones over the next two years generating significant value for patients and investors.”
AUM expects to begin enrollment in the fourth quarter 2022 with its lead drug candidate, AUM001, in a global Phase 2 trial as a monotherapy and in combination with anti-PD-1 therapy, KEYTRUDA, in metastatic colorectal cancer in collaboration with Merck.
AUM has also secured a partnership with Roche to develop AUM001 in combination with Tecentriq, Roche’s anti-PD-L1 therapy, across multiple solid tumor indications.
The company also is planning Phase 2 trials with AUM601, a potentially highly selective, oral small molecule designed to inhibit not only pan-TRK, but also resistance mutations of TRKs, by blocking the mutations that occur within the binding site. AUM601 was granted orphan drug designation by the FDA in September 2022.
