LianBio (OTCMKTS: LIANY), a China-based biotech firm, has become the target of an unsolicited takeover bid by Concentra Biosciences LLC, a company controlled by private equity fund Tang Capital Partners LP. The cash offer is set at USD 4.30 per share for 100% of LianBio’s equity, a significant premium that has seen LianBio’s share price surge from USD 1.39 on October 23 to USD 4.19 at the end of last week’s trading. The proposed deal would also grant Concentra/Tang the right to receive 80% of the net proceeds from any licensing or disposition of LianBio’s programs. With 108,062,638 Ordinary Shares outstanding as of November 9, 2023, The public data indicates the transaction value to be around USD 465 million.
Concentra anticipates that if the offer is accepted, final terms could be negotiated by December 22, 2023, with the deal closing in February 2024, contingent upon LianBio having at least USD 515 million in cash/cash equivalents at closing.
According to an SEC filing by Concentra, the company is capable of managing and/or transitioning currently ongoing clinical studies. Concentra has specifically praised LianBio’s efforts to monetize mavacamten (Camzyos), a drug approved in the US for obstructive hypertrophic cardiomyopathy and in-licensed for development and commercialization in Greater China, Thailand, and Singapore from Bristol-Myers Squibb in a 2020 deal.
LianBio had previously announced at the end of Q3 2023 that it was planning a strategic review of its operations to maximize shareholder value, with the firm holding USD 252.2 million in cash/cash equivalents at that time.- Flcube.com
