02:25 PM EDT, 03/14/2024 (MT Newswires) -- First Wave BioPharma ( FWBI ) shares were down nearly 20% in recent Thursday trading after the company said it has acquired ImmunogenX in an all-stock deal.

The combined company will focus on advancing a gastrointestinal pipeline consisting of several late-stage clinical assets, notably latiglutenase, an oral biotherapeutic for celiac disease treatment, nearing Phase 3 readiness, the company said.

James Sapirstein will continue as chairman and chief executive, while Jack Syage, the former CEO and co-founder of ImmunogenX, will serve as president and chief operating officer of First Wave BioPharma ( FWBI ).

First Wave BioPharma ( FWBI ) will license latiglutenase's rights in the US and Canada to a global pharmaceutical company post-approval and plans to seek funding from institutional healthcare investors for its ongoing development, the company said.

After the acquisition, the company issued 365,162 common shares to ImmunogenX shareholders, along with 11,777.418 shares of series G convertible preferred stock, First Wave BioPharma ( FWBI ) said.

Price: 5.24, Change: -1.29, Percent Change: -19.77