Were There Any Significant Reasons Why The Scopus BioPharma (SCPS) Stock Increased 13% Pre-Hours?

Shares of Scopus BioPharma Inc. (Nasdaq: SCPS) increased 13.44% to $0.25 on Thursday morning. We may then point to recent events to give a more comprehensive picture of the biopharmaceutical firm as the SCPS stock increased in the absence of recent news.

How have recent events at SCPS gone?             

At the 37th Annual Meeting and Exposition of the Society for Immunotherapy of Cancer (“SITC”), Scopus BioPharma (SCPS) and Duet BioTherapeutics, a pure-play immuno-oncology subsidiary, recently presented important scientific results. At the Boston Convention and Exhibition Center in Boston, Massachusetts, SITC was held from November 8–12, 2022.

SCPS recently executed a number of connected recapitalization transactions with the goal of maximizing shareholder value. Among these transactions is the cancellation of warrants to buy around 21 million shares of common stock of SCPS. Additionally, Duet BioTherapeutics, Scopus’ wholly owned subsidiary in immuno-oncology, is valued separately at $25 million as part of the recapitalization.

Bringing attention to Duet’s inherent value was a major factor in the recapitalization. In Duet, SCPS still holds a roughly 90% ownership position. This stake’s worth is far from SCPS’s whole current market capitalization. A large increase in the trading price of Scopus’s common stock should be sparked by the recapitalization’s completion.

By establishing a $25 million independent, stand-alone valuation, Duet will be in a position to raise money directly and float in 2023. With the recapitalization transactions, SCPS has more strategic freedom. SCPS can seek the most appealing financing options since it has the chance to raise money at both the Scopus and Duet corporate levels.

SCPS’s additional funding initiatives:

Duet’s access to more funding options will improve SCPS’s ability to raise the funds required to hasten the development of DUET-02, a very promising antisense technology. Scopus BioPharma (SCPS) will also be able to further the ongoing investigation of systemic delivery formulations for DUET-01 by Marcin Kortylewski, Ph.D., Co-Founder and Senior Scientific Advisor of Duet BioTherapeutics and Professor of Immuno-Oncology at City of Hope. Duet will be able to go public at a valuation much higher than its present $25 million valuation thanks to the developments.

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