Sarepta Therapeutics (NASDAQ:SRPT) is up 14% premarket on increased volume stoked by speculation that FDA approval may finally be at hand. Apparently traders are taking positions based on the rumor that eteplirsen reviewer Ron Farkas has left the agency. He was the most direct in his opinion that the company had not submitted sufficient data to prove the efficacy of eteplirsen for the treatment of Duchenne muscular dystrophy. Traders appear to be making the leap that his departure, if true, was prompted by his opposition to the impending approval of eteplirsen.
Update: Yesterday evening, Benzinga reported that Dr. Farkas has, indeed, left the FDA. His last day was supposedly September 9. According to a later post by Benzinga, Farkas joined life sciences consulting firm PAREXEL (OTCPK:PRLX).
In a regulatory submission filed today, Parallax Health Sciences (OTCPK:PRLX) reports that it inked an agreement to acquire QOLPOM (Quality of Life Peace of Mind) on September 8. The Santa Monica, CA-based firm provides a service to residential-based caregivers that leverages the Internet of Things. The core of the service is the QOLPOM Hub, a medication dispensing, management and remote monitoring system that ensures seniors and chronic care patients at home take the correct medications on time and notifies caregivers if a medication is missed or has a medical status report that requires follow-up.
In exchange for 100% of QOLPOM's stock, QOLPOM shareholders will receive a grant from Parallax to purchase 5M shares of Parallax stock for $300K ($0.06/share). In addition, there is a cash earn-out of $2M, a 3% royalty paid to an unnamed third party non-profit organization and 2.5M options to buy PRLX stock.
The transaction should close by the end of the month.