Health/Life Sciences

Funding agency gives to purchase Vancouver, B.C.-based biotech Zymeworks for $733M in money

Zymeworks CEO Kenneth Galbraith. (Zymeworks Picture)

World funding agency All Blue Capital has provided to purchase Zymeworks, a public biotech firm based mostly in Vancouver, B.C., with operations in Seattle.

All Blue delivered a letter to the Zymeworks board on Thursday providing to amass the corporate for $10.50 per share, for a complete of $773 million in money, in response to a regulatory submitting.

The non-binding proposal gives a share value greater than twice the $4.88 worth at market shut on Wednesday. The inventory gained greater than 30% in after-hours buying and selling on Thursday, after Reuters first reported the bid.

“We consider that the Firm has suffered from extreme worth erosion resulting from quite a few critical missteps by an unfocused management with no clear technique for enhancing efficiency,” All Blue’s letter to the board mentioned.

Zymeworks has been by way of a collection of latest shakeups, and changed its CEO in January with business veteran Kenneth Galbraith. Galbraith introduced plans to put off 1 / 4 of the corporate’s workforce amidst a “streamlined” R&D technique centered on its medical oncology packages. The corporate additionally raised $100 million in January in a public providing, pricing its shares round $8, far beneath a excessive of greater than $50 early final yr.

Dubai-based All Blue Capital at present owns shut to five.5% of Zymeworks’ shares. The agency’s investments embody Pinterest, SpaceX, Peloton, Lyft and different tech-focused corporations.

All Blue is “underneath no obligation to interact in any discussions or consummate any transaction,” in response to its letter, and the agency “could decide to vary the phrases of the proposal, withdraw the proposal or in any other case change their intentions” at any time.

Zymeworks launched a press release Thursday afternoon. “The Zymeworks board of administrators will fastidiously evaluation the proposal to find out the plan of action that it believes is in the very best curiosity of the corporate and all Zymeworks’ shareholders. The board reminds shareholders that no formal provide has been made,” mentioned the assertion, including, “as such there isn’t a want for Zymeworks shareholders to take any motion at the moment. If a proper provide is made, it will likely be reviewed by the board with its advisors, and a proper advice by the board will likely be made to shareholders in the end.”

Zymeworks is creating “bispecific antibodies” that acknowledge two totally different molecular targets concurrently, in addition to different varieties of therapies. Its lead candidate is in late-stage medical trials.

Editor’s word: This story has been up to date with Zymeworks’ response.  

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