Algorithm Sciences is no longer planning to set up a base on Hoth Therapeutics, as the two small biotechs terminate a planned merger.
It seems the companies had a very bad feeling about the deal, according to a short update Friday morning.
“After further discussions and review, both Hoth and Algorithm have determined that a definitive merger agreement cannot be reached and it is in the best interest of both companies to terminate the letter of intent and continue to operate as separate companies,” the release said.
The deal was announced at the end of April, with the companies pledging to join forces as one company to be named Algorithm Sciences to work on Algorithm’s pulmonary arterial hypertension mission. Financial terms of the original deal were not disclosed.
Algorithm CEO Mike Tilton was expected to lead the new entity and its existing chairman would do the same role. The merger meant that Algorithm would become the majority owner of Hoth’s stock with 86% of the shares of the combined company.
Hoth CEO Robb Knie said at the time that the combination “translates to additional billions of dollars in market opportunity for current shareholders.”
Now, Hoth is heading out into the icy terrain alone.
"Hoth is continuing development from a position of strength and stability with over $12 million on the balance sheet to carry us through more than 12 months of continued development," Knie said in a statement.
The company will continue to work on a phase 2a study for HT-001, which is being tested to treat the side effects of EGFR inhibitor therapy.