Acasti Pharma Inc (NASDAQ: ACST) stock dropped by 22% in the past month. For investors, the company's future does not seem to be very clear, perhaps, it is not a good time to buy the stock now.

Acasti advanced an omega-3 therapeutic, CaPre, designed for the treatment of hypertriglyceridemia through two phase 3 clinical trials: the TRILOGY trials. However, these two TRILOGY trials did not achieve statistical significance for the primary endpoint.

In May this year, Acasti announced that it had entered into a definitive agreement to acquire Grace and their pipeline of drug candidates addressing critical unmet medical needs, but this transaction remains subject to approval of Acasti stockholders, as well as applicable stock exchanges. The company recently said that it is going to seek the shareholder approvals necessary to complete a merger, elect directors, and for other related matters, and the 2021 annual and special meeting of its shareholders is going to be held virtually on August 26, 2021.

Following this merger, the company expects to have more than $60 million in cash, which should provide at least two years of operating runway. Notably, Grace’s three lead programs have all received Orphan Drug Designation from the U.S. FDA, which could provide up to seven years of marketing exclusivity in the United States upon FDA approval of the New Drug Application, provided that certain conditions are met. With all of this in mind, ACST stock is still worth watching closely.

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