By Fineline Cube UK-based biotech F-star Therapeutics Inc. (NASDAQ: FSTX) announced in a stock exchange press release that the deadline for its proposed takeover by Sino Biopharmaceutical Ltd (HKG: 1177) subsidiary invoX Pharma has been delayed for a second time. The delay is attributed to a review by the Committee on Foreign Investment in the United States (CFIUS), which recently requested at least a 45-day extension to complete its assessment. This follows an initial 30-day review period triggered by US authorities in mid-August. F-star’s shares closed down 3.41% yesterday after the announcement.
Deal Overview and Previous Extensions
InvoX, the UK-based international arm of Sino Biopharmaceutical, made an offer of $7.12 per share, valuing F-star at $161 million. The offer was accepted and announced in June. The companies initially extended the deal deadline in August due to the ongoing CFIUS review.
Market Context and CFIUS Trends
Recent trends suggest a high risk of CFIUS blocking the deal. Earlier this month, China-based CDMO Asymchem Laboratories (Tianjin) Co., Ltd abandoned its purchase of US-based CDMO Snapdragon Chemistry due to CFIUS objections.
F-star’s Pipeline and Future Outlook
F-star boasts an attractive pipeline of bispecific antibodies (BsAbs), led by FS118, a PD-L1/LAG-3-targeted antibody currently in Phase II trials for head and neck cancer, non-small cell lung cancer (NSCLC), and diffuse large B cell lymphoma (DLBCL). Other candidates include FS222, a CD137 (4-1BB) agonist and PD-L1 inhibitor, and FS120, which targets OX40 and CD137 (4-1BB). Despite the regulatory hurdles, F-star’s innovative pipeline positions it well for future growth in the oncology space.-Fineline Info & Tech