From Alzheimer's to PAH: Hoth Therapeutics and Algorithm Sciences Combine to Pursue High Blood Pressure Solutions

Alzheimer's company Hoth Therapeutics Inc HOTH signed a Letter of Intent to merge with Algorithm Sciences Inc, a company focused on Pulmonary Arterial Hypertension (PAH). 

The combined company will be named Algorithm Sciences Inc. and be led by Mike Tilton as CEO, David Cavalier as CFO, and Anthony Zook, Algorithm's current chairman of the board, who will be nominated as chairman of the combined company's board of directors. 

Algorithm will become the majority holder of Hoth's outstanding stock.

"The combination of assets in the combined company translates to additional billions of dollars in market opportunity for current shareholders," stated Robb Knie, CEO of Hoth. 

Hoth shareholders are currently anticipated to own approximately 14% of the combined company, and current Algorithm shareholders are currently anticipated to own approximately 86%

The company's shares are plummeting as investors are probably reacting to the fact that Hoth is focused on Alzheimer's disease, while the new company will focus on pulmonary arterial hypertension, which is high blood pressure in the lungs.

Hoth Therapeutics recently announced proof-of-concept data generated using cognitive and behavioral assessments in an Alzheimer's disease mouse model.

Price Action: HOTH shares are down 10% at $1.71 on the last check Wednesday.