Concentra Biosciences’ spread-betting on biotech acquisitions has finally reeled in another win in 2023, with Theseus Pharmaceuticals taking up the offer of the buyout.
Over the last few weeks, Theseus had been mulling offers from both Tang Capital-owned Concentra and the VC firms Foresite and Orbimed. Now, it has announced that it’s opting for the former.
The final deal will see Concentra pay around $4.05 per share of Theseus—a 25 cent markup on the $3.80 first muted a month ago. In addition, Theseus shareholders remain in line for a contingent value right to receive 80% of the net proceeds from licensing or selling off any of the biotech’s programs within 180 days of the merger along with 50% of “certain specified potential cost savings.”
Tang Capital Partners already owns 7% of the biotech, and the same proportion of shares is also owned by both Tang Capital Management and their CEO Kevin Tang, according to a previous SEC filing.
Theseus had another offer on the table, although the financial details were less clear. Foresite and Orbimed, which own 21.6% and 40.1% of Theseus’ shares, respectively, had reached out about potentially acquiring all the company’s remaining shares. If Theseus accepted the VC firms’ offer, the plan was to take the company—which has been listed on the Nasdaq since October 2021—private again.
Theseus said this morning that its board of directors had conducted a “thorough review process” before determining that Concentra’s offer “is in the best interests of all Theseus shareholders.”
The Massachusetts biotech had made no secret of the fact that it was open to a buyout. The company had been struggling since July when development was halted on a gastrointestinal stromal tumor treatment due to dose-limiting toxicities observed in a trial, sending Theseus’ shares tumbling 65%. The company received the acquisition offer just days after disclosing that it was laying off 72% of its workforce and “exploring strategic alternatives” that could include a sale of the business.
It’s been a busy year for Tang Capital, which has already scored one success when it used Concentra to make a last-minute offer to snatch Jounce Therapeutics out of the hands of Redx Pharma in March. Overall, the company’s hit rate in 2023 hasn’t been great though, with Atea Pharmaceuticals, Rain Oncology and LianBio all turning down acquisition bids.