Protagenic & Phytanix Merge in All-Stock Move, Sparking Retail Frenzy

Protagenic Therapeutics (NASDAQ: PTIX) just pulled off a biotech plot twist worthy of a season finale. On May 19, shares skyrocketed over 240% following news of an all-stock merger with Phytanix Bio, forming a new entity: Phytanix, Inc. It’s a full pipeline overhaul, and not just a name change.

The new Phytanix has six drug candidates: PT-00114, a Phase I/IIa peptide targeting stress-related disorders, and five preclinical assets, including PHYX-001, a potassium channel modulator, and several cannabinoid-based compounds. They’re eyeing big markets like obesity and CNS disorders, stepping into arenas dominated by heavyweights like Novo Nordisk (NYSE:NVO).

A closeup of pills in a pharmacy, representing the high quality medications of the company.

Phytanix shareholders will own about 65% of the combined company, with Protagenic investors owning the remaining 35%. The deal includes common stock, convertible preferred shares, and warrants, pending Nasdaq stockholder approval requirements.

With team members from GW Pharma (think Epidiolex and Sativex), Phytanix brings seasoned CNS expertise. However, most assets are in early stages, meaning substantial development ahead. In summary, Protagenic’s leap into Phytanix territory is bold. Whether it’s a biotech Cinderella story or a cautionary tale depends on how the next chapters unfold.

While we acknowledge the potential of PTIX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PTIX and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None.