Abeona Acquires Experimental Treatment, Plans $30 Million Private Placement
Key Facts
Abeona Therapeutics announced on November 9, 2026, that it had acquired the assets of Ellodi Pharmaceuticals’ drug candidate APT-1011, now renamed ABO-801, and entered into an agreement for a private placement expected to generate $30 million in gross proceeds before fees and expenses. The announcement combines an expansion of the company’s portfolio with financing for its operations as it seeks to continue developing its treatments and support the commercialization of ZEVASKYN. The company said the proceeds would be used for general corporate purposes, including development of its drug candidates and ZEVASKYN commercialization efforts. The placement was expected to close on November 10, 2026. The announcement follows growth in ZEVASKYN revenue in the third quarter, while the cash and investments balance reported at the end of September does not include the new financing proceeds.
Under the acquisition agreement, Abeona will pay for the asset with $20 million in common stock at closing, with no upfront cash payment. Ellodi is eligible to receive $30 million upon approval by the U.S. Food and Drug Administration, plus payments of up to $30 million upon achievement of specified sales milestones. The agreement also includes tiered royalties on net sales. These terms mean part of the consideration is tied to future regulatory and commercial milestones, in addition to the shares to be issued when the deal closes. The $30 million in private-placement proceeds is separate from the acquisition consideration.
Abeona describes ABO-801 as an orally disintegrating tablet containing fluticasone propionate, being developed as a once-daily treatment for eosinophilic esophagitis. The candidate has received orphan drug and fast track designations from the U.S. Food and Drug Administration. The company said about 360,000 patients in the United States have been diagnosed with the disease. But the description of the candidate as ready for Phase 3 follows an earlier program that failed to meet its primary endpoint for patient-reported symptoms. This history shows that the next step requires a new study, despite prior results on other measures.
The earlier clinical program included two completed Phase 3 studies involving a total of 361 patients. Neither study met the prespecified co-primary endpoint for patient-reported symptoms. Abeona said, however, that both studies showed statistically significant improvement on several endoscopic measures. The program record therefore includes positive results on some measures alongside a failure on the primary patient-symptom measure. The company plans to begin the planned Phase 3 study in mid-2027 and expects to announce topline results by the end of 2028, subject to the timing of study initiation and enrollment.
Commercially, ZEVASKYN net revenue was $13.5 million in the third quarter of 2026, up 18% from $11.4 million in the second quarter. The company said one treatment batch generated no revenue during the quarter because it did not meet the release criterion for the identity test. The treatment’s inclusion in the New Technology Add-on Payment program took effect on October 1, 2026, giving eligible hospitals a path to additional reimbursement when treating eligible Medicare beneficiaries. In results for the same quarter, Abeona reported a net loss of $4.8 million, or $0.08 per share, compared with a loss of $20.2 million, or $0.35 per share, in the second quarter. The figures point to growth in revenue from the commercial product and a lower quarterly loss compared with the previous quarter.
Cash, cash equivalents and short-term investments totaled $134.9 million on September 30, 2026, down from $146.8 million on June 30. The September balance does not include the $30 million in private-placement proceeds, as the financing was announced after the quarter ended. Abeona said net proceeds from the placement would be directed to general corporate purposes, including funding the development of drug candidates and supporting ZEVASKYN commercialization. Before the acquisition and financing announcement, the company’s stock closed at $4.17 on November 6, after closing at $3.91 on November 5, $4.22 on November 4, and $4.25 on both November 2 and 3. The company scheduled a call to discuss its results, commercial progress, acquisition and financing for November 9, 2026, at 8:30 a.m. Eastern time.