BOSTON, Dec. 23, 2020 (GLOBE NEWSWIRE) -- Yumanity Therapeutics (Nasdaq: YMTX), a clinical-stage biopharmaceutical company focused on the discovery and development of innovative, disease-modifying therapies for neurodegenerative diseases, today announced that its reverse merger with Proteostasis Therapeutics, Inc. closed on December 22, 2020, following the approval of Proteostasis shareholders. The combined company will operate under the name Yumanity Therapeutics, Inc., and its shares will commence trading on the Nasdaq Capital Market on December 23, 2020, under the ticker symbol “YMTX.” The $33.6 million PIPE transaction, announced on December 15, closed concurrently with the merger.

“Our joining the NASDAQ stock exchange through this merger marks a transformative moment in the history of the company as we look to deliver disease-modifying treatments to patients suffering from neurodegenerative diseases,” said Richard Peters, M.D., Ph.D., President, Chief Executive Officer and Director of Yumanity. “Our accelerating momentum will continue into 2021 as we look to deliver clinical data from our lead program for Parkinson’s disease as well as advance several other programs from our diverse portfolio of assets.”

Pursuant to the merger, all of Yumanity’s outstanding equity was converted into Proteostasis common stock and securities convertible into or exercisable for Proteostasis common stock. Immediately following the completion of the merger, the former stockholders of Yumanity held approximately 70.3% of the outstanding fully-diluted shares of common stock of the combined company. Proteostasis shareholders and optionholders retained an ownership interest representing approximately 29.7% of the outstanding fully-diluted shares of common stock of the combined company. Proteostasis shareholders as of immediately prior to the merger also received contingent value rights entitling them to share in proceeds, if any, from the monetization of the Proteostasis cystic fibrosis assets, though there can be no assurances any such monetization will occur. The combined company will have nine directors including two Proteostasis directors, David Arkowitz and Kim Drapkin, and the existing Yumanity Directors; Dr. Tony Coles will serve as executive chairperson.

Yumanity’s development pipeline consists of the following programs:

• Yumanity’s lead product candidate, YTX-7739, which is currently in Phase 1 clinical development for the treatment and disease modification of Parkinson’s disease.
• Additional wholly owned programs, including YTX-9184, expected to enter the clinic next year for the treatment of dementia with Lewy bodies, as well as programs for amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease), multi-system atrophy, Alzheimer’s disease, and other neurodegenerative diseases are also in development.
• Programs for amyotrophic lateral sclerosis and frontotemporal lobar dementia (FTLD), which are being developed as part of a strategic research collaboration and license agreement with Merck.
• Yumanity plans to explore strategic alternatives for the Proteostasis assets.

About Yumanity Therapeutics
Yumanity Therapeutics is a clinical-stage biopharmaceutical company dedicated to accelerating the revolution in the treatment of neurodegenerative diseases through its scientific foundation and drug discovery platform. The Company’s most advanced product candidate, YTX-7739, is currently in Phase 1 clinical development for Parkinson’s disease. Yumanity’s drug discovery platform is designed to enable the Company to rapidly screen for potential disease-modifying therapies by overcoming toxicity of misfolded proteins in neurogenerative diseases. Yumanity’s pipeline consists of additional programs focused on dementia with Lewy bodies, multi- system atrophy, amyotrophic lateral sclerosis (ALS or Lou Gehrig’s disease), frontotemporal lobar dementia (FTLD), and Alzheimer’s disease.

For more information, please visit www.yumanity.com.