July 29 (Reuters) – Processa Pharmaceuticals said on Wednesday it acquired privately held Vidya Therapeutics in an all-stock deal, gaining access to its lead candidate being developed to target diseases involving the immune system.
Shares of Processa, which also reported a share sale to raise about $200 million, slumped more than 40% to $1.84 in premarket trading, following the announcement.
• Processa said the funds would support development of VT-7208 — the experimental once-daily pill being tested in allergies, skin conditions and multiple sclerosis — and broader operations into the second half of 2029.
• The Florida-based company plans to begin mid-stage studies in food allergies and chronic spontaneous urticaria, a condition that causes recurring itchy rashes, in the second half of 2026.
• A study in relapsing multiple sclerosis is expected to begin in the first half of 2027.
• Initial results from the three studies are expected between late 2027 and late 2028.
• VT-7208 showed activity at low once-daily doses in an early-stage study. It was generally well-tolerated, with no serious side effects reported, Processa said.
• The financing, expected to close on July 30, will initially give investors preferred shares that require shareholder approval before they can be converted into common stock.
(Reporting by Kunal Das in Bengaluru; Editing by Joyjeet Das)
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