Shares of microcap biopharma Aerpio Pharmaceuticals, Inc. (ARPO) are advancing strongly Thursday on above-average volume.
The upside in reaction a positive analyst action. H.C. Wainwright analyst Robert Burns upgraded Aerpio from Neutral to Buy and instituted a post-merger price target of $22 per share.
Aerpio announced a reverse merger transaction in May under which it will combine with privately-held Aadi Bioscience. Following the merger, Aerpio will change its name to Aadi Bioscience and trade on the Nasdaq under the ticker symbol AADI. The combined company will focus on advancing Aadi's lead product candidate FYARRO.
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The Aadi Bioscience transaction appears transformative, allowing rapid advancement in oncology, Burns said in the upgrade.
In a Schedule 14A filing with the SEC, Aerpio has scheduled a special meeting of shareholders at 10 am on Aug. 17, wherein shareholders will be asked to vote on certain proposals necessary for the consummation of the transaction.
Aerpio also said its board has unanimously approved the transaction.
At last check, Aerpio shares were soaring 61.4% at $2.76.