Histogenics (NASDAQ:HSGX) Stock Plunges 30% On Merger with Ocugen

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Histogenics Corp (NASDAQ:HSGX) stock was down 30% on Friday following the announcement that shareholders had approved all proposal related to the proposed business combination with Ocugen Inc. The stockholders approved the proposal on September 26, 2019, at a special shareholder meeting.

The Merger of Histogenics and Ocugen

The merger, as announced previously, will result in the creation of a public company. Ocugen shareholders will be the majority stockholders of the new company. The proposal is, however, subject to additional customary regulatory approval and closing conditions. The companies are expecting to close the merger around Sept 27, 2019.

After closing the merger, the company will amend the name, and the combined company will be “Ocugen Inc.” It will trade on Nasdaq under the symbol “OCGN.” Ocugen’s executive team will lead the combined company headed by Ocugen co-founder, chairman, and CEO Shankar Musunuri.

Ocugen, a clinical pharmaceutical company, focuses on innovation, development, and commercialization of novel therapies that manage underserved and rareeye diseases. The company provides a diverse ophthalmology portfolio which includes biologics, innovative gene therapies, as well as small molecules. It also targets various high need retina as well as ophthalmic surface diseases.

Ocugen’s Novel Therapies

The company is also leveraging a novel gene therapy technology to help in addressing different genetically inherited retinal diseases. It includes therapies that depend on nuclear hormone receptor genetic factors RORA (OCU410) and NR2E3 (OCU400). Already OCU410 has approval for orphan drug destinations targeting two different IRDs.

The company is also creating innovative biologic therapies meant for diabetic retinopathy (OCU200) DME and wet AMD and retinitis pigmentosa. Currently, Ocugen is in the third phase trial of OCU300 for treatment of oGVHD patients through the company’s patented OcuNanoE-Ocugen’s ONE Platform tech to improve the efficacy of up-to-date ophthalmic therapeutics. The company’s OCU300 is the only and first Therapeutic with orphan drug designation for managing of oGVHD offering specific regulatory and commercial benefits.

Histogenics has also announced that it has signed an amendment to the asset purchase agreement with Medavate corp. The companies have amended the closing date as per the asset purchase agreement to October 4.