Forte Biotech is a biopharmaceutical company, which mostly produces products to treat dermatologic diseases. Recently it has concluded a merger with Tacogen, another pharmaceuticals company which had to go for the reverse split. The market has been harsh for Tacogen. Now with this merger, they are also looking for some gains. Forte biotech is also very optimistic about this deal. Their CEO has come out saying; they are looking to build disruptive products for the dermatologic diseases. And their balance sheet has what it takes to be there, and make something as great as they are looking to, with their current project. Currently, it trades under NASDAQ: FBRX at https://www.webull.com/quote/nasdaq-fbrx tag. It will be interesting to see how this merger plays out in the medium to short term.
The Merger
To conclude the merger Tacogen went for 15:1 reverse split. In the post-merger scenario, the merged entity will have about 11 million common stock shares. While in the combined entity the forte will own 84.7% of the combined company while forte will hold 15.3% ownership. They have explicitly made it clear that combined entity will also be trading with same tag NASDAQ: FBRX in the market. They are looking for some substantial gains in the market as they seek to develop their flagship live biotherapeutic.
Flagship Product
The biotherapeutic is developing a very ambitious product, FB 401, for anti-inflammatory skin diseases. They have almost completed half of the human trials. They are conducting trials both on adults as well as kids. The company representative recently said, the outcome of the trials has been very encouraging. And the results can boost the confidence of the bulls as well. Many of them were already pitching for the company. The clouds will get clear once the trading resumes at NASDAQ: FBRX. The success of this product is important for this newly formed entity. It will give confidence to all stakeholders.
Outlook
The critics of this merged entity of Forte and Tacogen are sayings about; the NASDAQ: FBRX has used so many modal verbs in their forward-looking statement. They are seeing it with the eyes of suspicion. But such forward-looking statements are very common in this industry. At least the honest players do not make false promises; as they look to consolidate their brand.
So, the fact they are not painting a very rhetoric driven picture. They are humble yet ambitious, which is good. They are optimistic but do not want to make a remark, which is not rational for the industry the company works in. If you are new for stock trading and do not know what is day trading , then you need check more stock trading information before investing. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.
