Radiation Cancer Therapy Player Alpha Tau Medical Agrees SPAC Merger Deal At $1B Valuation

Israel-based alpha-radiation cancer therapy developer Alpha Tau Medical has agreed to merge with a special purpose acquisition company (SPAC) Healthcare Capital Corp HCCC, giving it a valuation of $1 billion.
Alpha Tau's Alpha DaRT delivers potent alpha radiation to destroy solid tumors with localized precision, sparing surrounding healthy tissue.
Alpha DaRT has recently received the FDA's Breakthrough Device Designation to indicate Squamous Cell Carcinoma of the skin and oral cavity.
In 2019, Alpha Tau reported positive Phase 1 results for a clinical trial on 28 patients with brain, neck tumors, and squamous cell carcinoma skin cancer.
With 78% of patients, the tumor completely disappeared, and 61% of the patients have previously undergone other treatment that had failed.
The merger is expected to provide up to $367 million in gross proceeds, the companies said in a statement.
The funds are expected to last at least into 2024.
Alpha Tau will continue to be led by its current management team, and upon closing, it is expected that HCCC Chairman David Milch will be appointed to the Alpha Tau board of directors.
The proposed business combination is expected to conclude by the end of 2021.
Price Action: HCCC shares are up 2.02% at $9.83 during the market session on the last check Thursday.