Yumanity Therapeutics Shares Trading Higher Today - Read Here Why

Yumanity Therapeutics Inc YMTX has agreed to sell its lead clinical-stage product candidate, YTX-7739, and discovery-stage neuroscience candidates to Janssen Pharmaceutica NV, a unit of Johnson & Johnson JNJ for $26 million.
Yumanity plans to distribute any remaining available cash proceeds from the sale to Yumanity stockholders via a one-time dividend and net cash requirements associated with the proposed merger between Yumanity and Kineta Inc.
Under the second agreement, Kineta will become a wholly-owned subsidiary of Yumanity in an all-stock transaction, resulting in a combined publicly-traded company renamed Kineta Inc.
Also Read: Yumanity Cuts 60% Of Its Workforce, Explores Strategic Alternatives.
The combined entity will focus on immuno-oncology and continue Yumanity's ongoing research collaboration with Merck & Co Inc MRK in amyotrophic lateral sclerosis and frontotemporal lobar dementia.
Kineta's IND-ready lead asset is KVA12.1, a VISTA blocking immunotherapy to address the problem of immunosuppression in the tumor microenvironment. Kineta is also developing fully human antibodies that target CD27 and CD24.
Shawn Iadonato will serve as Chief Executive Officer, and Craig Philips will serve as President of the combined company.
Price Action: YMTX shares are up 47.9% at $2.10 during the premarket session on the last check Monday.