Stem cell therapy biotech PrimeGen US is taking the less-traveled special purpose acquisition company (SPAC) route to the public markets.
The California biotech, which is working on preclinical stem cell therapies for liver disease and other serious conditions, is merging with DT Cloud Star Acquisition. The SPAC listed on the Nasdaq in 2024 with a $69 million IPO.
Since then, Brooklyn-based DT Cloud Star has been on the hunt for a suitable company to merge with. The merger with PrimeGen is expected to complete in the second half of the year, according to a Feb. 4 filing with the Securities and Exchange Commission.
“We are thrilled to partner with DT Cloud Star to bring PrimeGen US into the public markets at this pivotal moment,” PrimeGen co-CEO Daniel Chiu said in the filing. “This transaction is expected to enhance our access to capital and resources, supporting the continued development of our stem cell and exosome programs.”
“Our team’s scientific focus and innovation position us to further build our presence in the regenerative medicine field,” Chiu added.
PrimeGen has been developing triple-activated mesenchymal stem cells as a potential treatment for acute liver injury and related conditions. The company has touted therapeutic activity in animal studies and met with the FDA in December to seek approval to take a candidate for acute alcoholic hepatitis into human trials.
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In this morning’s filing, DT Cloud Star CEO Sam Zheng Sun said the SPAC has “great confidence” PrimeGen is “uniquely positioned to deliver much-needed regenerative medicine to treat challenging diseases, such as acute liver failure.”
“By leveraging PrimeGen’s nearly two decades of research and their triple activated MSC platform, we believe the combined entity will successfully capture large unmet market opportunities and provide significant value to patients and shareholders alike,” the CEO added.
SPAC deals have become a rare sight in recent years, despite a number of high-profile announcements as recently as 2022. Last year brought a few examples of biotechs planning to use this route to go public, including German antibody biotech Veraxa, BridgeBio Oncology Therapeutics and Singapore-based Nanyang Biologics.
