Processa buys Vidya Therapeutics, raises $200 million for drug trials

• Processa said the funds would support development of VT-7208 — the experimental once-daily pill being tested in allergies, skin conditions and multiple sclerosis — and broader operations into the second half of 2029.
• The Florida-based company plans to begin mid-stage studies in food allergies and chronic spontaneous urticaria, a condition that causes recurring itchy rashes, in the second half of 2026.
• A study in relapsing multiple sclerosis is expected to begin in the first half of 2027.
• Initial results from the three studies are expected between late 2027 and late 2028.
• VT-7208 showed activity at low once-daily doses in an early-stage study. It was generally well-tolerated, with no serious side effects reported, Processa said.
• The financing, expected to close on July 30, will initially give investors preferred shares that require shareholder approval before they can be converted into common stock.

July 29 (Reuters) - Processa Pharmaceuticals PCSA.O said on Wednesday it acquired privately held Vidya Therapeutics in an all-stock deal, gaining access to its lead candidate being developed to target diseases involving the immune system.

Shares of Processa, which also reported a share sale to raise about $200 million, slumped more than 40% to $1.84 in premarket trading, following the announcement.