BRIEF—Wize Pharma soars as it inks strategic deal with Bonus BioGroup

Israel-based biotech firms Wize Pharma and Bonus BioGroup today announced a collaboration, whereby Bonus will issue $16.4 million worth of its ordinary shares to Wize, in exchange for both 37% of Wize's future LO2A-based revenue (if any) and a $7.4 million investment by Wize into Bonus BioGroup.

The news pushed shares of Wize up more than 31% to $0.21, while those of Bonus dipped 0.9% to 49.00 shekels.

The closing of the transaction is subject to the satisfaction of certain customary closing conditions, including the receipt of approval for the issuance of Bonus BioGroup shares from the Tel Aviv Stock Exchange (TASE).

"We are excited about the potential strategic alliance between Wize Pharma and Bonus BioGroup. The transaction, if closed, will improve our balance sheet without dilutive effect to our common stock holders, while we continue to seek to advance our ongoing clinical program for LO2A, currently in a Phase IV study for the treatment of dry eye syndrome in patients with Sjogren's," stated Noam Danenberg, chief executive of Wize.