Vallon rockets as it announces merger with GRI Bio

Pennsylvania, USA-based CNS specialist Vallon Pharmaceuticals’ (Nasdaq: VLON) stock price soared an initial 230% to $0.85, after the company unveiled plans to merge its operations with privately-held biotech GRI Bio in an all-stock transaction.

The combined company will focus on advancing GRI Bio’s innovative pipeline of NKT cell regulators for the treatment of inflammatory, fibrotic and autoimmune diseases. Following the closing of the merger, the combined company is expected to operate under the name “GRI Bio Inc” and will focus on the development of GRI Bio’s pipeline and trade on The Nasdaq capital market under the ticker symbol GRI. The transaction is expected to close in the first quarter of 2023.

Early this year, Vallon had a major disappointment with the failure of its pivotal SEAL study in attention deficit hyperactivity disorder (ADHD), which was evaluating a special abuse-deterrent formulation of immediate release dextroamphetamine. This is the firm’s only clinical asset and after that Vallon said it was open to a potential merger or acquisition.