Chardan Healthcare Acquisition Corp. to Merge with BiomX Ltd., Creating a Publicly Listed Microbiome Therapeutics Company Valued at $254 Million

On July 18, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Chardan Healthcare Acquisition Corp. (CHAC) announced its merger with the microbiome technology company BiomX. The transaction is expected to be completed in October of this year. Upon completion of the merger, CHAC will be renamed BiomX and listed on the New York Stock Exchange, with an initial market capitalization of approximately $254 million.

CHAC has entered into transaction agreements with BiomX and existing investors including OrbiMed, RTW Investments, and Takeda Ventures, subject to a minimum transaction size of $50 million, covering purchase, sale, and voting rights agreements.

CHAC previously raised $70 million through an initial public offering. Under the terms of the merger transaction, CHAC will issue 16.625 million shares to BiomX security holders, with certain BiomX shareholders eligible to receive an additional 6 million CHAC shares.

BiomX, established in 2017 and headquartered in Israel, is a biotechnology and healthcare company. The company is dedicated to researching phage therapy to prevent and treat diseases caused by imbalances in the human microbiome. In collaboration with the Weizmann Institute of Science, BiomX develops novel phages based on cutting-edge innovative research by scientists such as Dr. Rotem Sorek, Dr. Eran Elinav, and Dr. Timothy K. Lu.

Bacteriophage therapy is an effective approach for treating pathogenic bacterial infections by specifically eliminating harmful bacterial strains through the lysis of bacterial cells. Each bacteriophage targets only one or a few specific types of bacteria, enabling it to selectively eradicate pathogens without affecting the host's normal microbiota. Furthermore, bacteriophage populations can expand in tandem with the spread of their bacterial hosts, allowing for low-dose administration. Compared with antibiotics, bacteriophages are easier to culture and purify, and they possess stronger penetration capabilities, enabling them to reach all sites of bacterial infection.

The development of BiomX’s phage therapy is primarily based on advanced Phage Display Technology, phage culture, computational biology, and synthetic biology. Additionally, BiomX has expanded into fields such as cosmetics and gastrointestinal pharmaceuticals.

This merger will provide BiomX with substantial capital, facilitate its public listing, and further strengthen its leading position as a developer of microbiome-based therapeutic products. Currently, BiomX is developing novel phage-based therapies aimed at treating chronic conditions such as acne-prone skin disorders and enteritis. The company’s product pipeline includes treatments for acne, inflammatory bowel disease (IBD), primary sclerosing cholangitis (PSC), and colorectal cancer (CRC). Clinical trials for BiomX’s dermatology portfolio are expected to commence in the second half of the year.

CHAC, established in 2017, is an emerging growth company under Chardan Investments, a healthcare investment bank. The company primarily acquires healthcare enterprises to foster the development of the North American healthcare industry.

“CHAC hopes to partner with innovative biotechnology companies like BiomX to leverage existing resources in developing new products and technologies for mutual benefit,” said Jonas Grossman, President and Chief Executive Officer of CHAC.

BiomX CEO Jonathan Solomon stated, “The substantial capital provided to BiomX through this merger will be used to support our clinical trials, accelerate clinical research, and scale up product manufacturing. The rapid advancement of natural phage therapy fills us with confidence in our ability to eliminate harmful bacteria and cure chronic diseases.”

(Compiled by Xu Xiaoxue)