Yumanity Therapeutics jumps on sale of lead drug, merger with unit Kineta

Kineta

06/06/2022 12:45

** Shares of Yumanity Therapeutics  YMTX.O  rise ~60% to
$2.27 before the bell 
    ** Stock among top pct gainers on the Nasdaq premarket 
    ** Drug developer agrees to sell its lead drug candidate,
YTX-7739, to Janssen Pharmaceutica NV for $26 mln in cash
 urn:newsml:reuters.com:*:nGNX6ZPQFz
    ** Co was testing YTX-7739 as a potential treatment for
Parkinson's disease 
    ** YMTX plans to distribute any remaining cash proceeds from
sale of drug to its stockholders via one-time dividend
    ** Co also says it will merge through an all-stock
transaction with its wholly-owned unit Kineta 
    ** Upon closing of merger, current Kineta stockholders are
expected to own about 85% of combined company 
    ** Combined co expects to close a PIPE financing in
connection with proposed merger, says YMTX
    ** Up to Friday's close, YMTX down ~52% YTD 

 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))