The acquisition of UK-based biologics firm F-Star Therapeutics (NASDAQ: FSTX) by China’s Sino Biopharmaceutical (HKG: 1177) may still secure approval from the Committee on Foreign Investment in the United States (CFIUS). According to a recent SEC filing, the companies have requested another extension to their deal deadline, now set for February 10, to provide additional time for negotiations with CFIUS. While F-Star and Sino Bio’s UK arm, InvoX Pharma, are reportedly in the late stages of negotiating a mitigation agreement, there are no guarantees that a final agreement will be reached.
Deal Background and Extensions
InvoX Pharma initially offered USD 7.12 per share, or USD 161 million in total, to acquire F-Star in a deal announced in June 2022. However, the transaction has faced multiple delays due to ongoing CFIUS reviews. The first extension was announced in August, followed by additional delays, most recently in December 2022. CFIUS imposed an interim order blocking the deal from proceeding, with January 29, 2023, set as the final day of its formal 45-calendar day review period.
F-Star’s Pipeline
F-Star Therapeutics has an attractive pipeline of bispecific antibodies (BsAbs), led by FS118, a PD-L1/LAG-3-targeted therapy currently in Phase II trials for head and neck cancer, non-small cell lung cancer (NSCLC), and diffuse large B cell lymphoma (DLBCL). Other promising candidates include FS222, a CD137 (4-1BB) agonist and PD-L1 inhibitor, and FS120, which targets OX40 and CD137 (4-1BB).-Fineline Info & Tech
