Investing.com -- InMed Pharmaceuticals Inc. (NASDAQ:INM) shares surged 115% Tuesday following the announcement of a definitive merger agreement with privately-held Mentari Therapeutics Inc., a biotechnology company developing migraine prevention therapies.
The all-stock transaction brings together Mentari’s migraine pipeline with InMed’s public market infrastructure. Upon closing, the combined entity will operate as Mentari Therapeutics and trade on the Nasdaq Capital Market under a new ticker symbol.
Pre-merger InMed shareholders are expected to own approximately 1.51% of the combined company, which is expected to have a pro forma equity value of approximately $421.4 million, including a concurrent private placement.
The private placement, led by Fairmount with participation from Commodore Capital, Deep Track Capital, Janus Henderson Investors, a16z Bio + Health, and other investment firms, will result in gross proceeds of approximately $290 million. The funding is expected to fully fund operations through 2028.
Mentari’s pipeline includes MT-001, an anti-PACAP monoclonal antibody with Phase 2a proof-of-concept data expected in 2028, and MT-002, a potentially first-in-class anti-CGRP and anti-PACAP bispecific antibody with Phase 1 data expected in 2027. First-in-human regulatory filings for MT-001 and MT-002 are expected mid-2026 and first quarter 2027, respectively.
The programs target validated pathways in migraine pathophysiology and aim to address unmet needs, as approximately 40-50% of patients treated with current approved therapies do not achieve a 50% reduction in monthly migraine days.
The transaction has received approval by the boards of both companies and is expected to close in the second half of 2026, subject to stockholder approval and other customary closing conditions.
Lucid Capital Markets is serving as financial advisor to InMed, while Wedbush Securities is serving as exclusive strategic financial advisor to Mentari.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
The fastest way to find out is with our Fair Value calculator. We use a mix of 17 proven industry valuation models for maximum accuracy. Get the bottom line for INM plus thousands of other stocks and find your next hidden gem with massive upside.