Elicio Therapeutics enters into merger agreement with Angion Biomedica
Published: Jan 17, 2023
By Hayley Shasteen
Elicio Therapeutics entered into a merger agreement as a wholly-owned subsidiary of Angion Biomedica Co. on Tuesday, becoming a Nasdaq-listed company.
The combined companies will continue operating under the name Elicio Therapeutics, with Angion stockholders owning 35% of the combined company. Along with the execution of the merger agreement, Angion committed $10 million in a bridge loan to Elicio.
The merger of the two companies will be closed in the second quarter of 2023. Elicio’s current executive team will helm the new company with corporate headquarters in Boston.
Angion Decides on Strategic Alternative
In July 2022, Angion halted its Phase II clinical trial of lead asset ANG-3070 for kidney fibrosis. As a result, the company announced that it sought “strategic alternatives” to preserve and increase shareholder value, including potential mergers.
Angion’s president and CEO said that the merger with Elicio was a “clear choice” when reviewing strategic alternatives to creating shareholder value.
Following the news of the merger agreement, Angion’s stock dropped 29% Tuesday morning.
Future of mKRAS Vaccines
The focus of Elicio moving forward will be ELI-002, a therapeutic cancer vaccine candidate that targets mKRAS-driven tumors. The KRAS genetic mutation occurs in up to 25% of malignant tumors, particularly colorectal and pancreatic cancers.
ELI-002 is currently under evaluation in Phase I clinical trials in patients diagnosed with pancreatic ductal adenocarcinoma and colorectal cancer that are mKRAS-driven. An additional Phase Ib/II trial is expected to occur in the second half of 2023.
The vaccine candidate uses Elicio’s Amphiphile (AMP) platform, which targets the lymph nodes. The AMP platform modifies vaccine molecules to make them the optimal size to reach the body’s lymph nodes, where the molecules can interact with the various immune system cells.
This interaction can lead to an enhanced therapeutic response, ushering in a powerful attack on malignant cells.