Yumanity leaps as it reveals Janssen asset purchase and merger deal with Kineta

Boston, USA-based neuroscience-focused firm Yumanity Therapeutics (Nasdaq: YMTX) today announced it has entered into definitive agreements for two strategic transactions, with the news sending the firm’s shares rocketing more than 33% to $1.90 by mid-morning

The first definitive agreement is an asset purchase agreement for the sale of Yumanity’s lead clinical-stage product candidate, YTX-7739, as well as Yumanity’s unpartnered discovery stage neuroscience product candidates and targets to Janssen Pharmaceutica, part of US healthcare giant Johnson & Johnson (NYSE: NJ), for $26 million in cash.

In connection with the closing of the proposed transaction, Yumanity plans to distribute any remaining available cash proceeds from the sale to Yumanity stockholders via a one-time dividend, net of any amounts retained for outstanding obligations and net cash requirements associated with the proposed merger between Yumanity and US biotech Kineta. The amount of such dividend will depend on many factors and will not be determined until closer to the closing date.

Merged company to be renamed Kineta