A planned $425m merger between a Cheshire drug developer and a US counterpart has been called off.
The deal was first announced last month when the boards of Alderley Park-based Redx Pharma and Jounce Therapeutics both unanimously recommended the deal to their shareholders.
However, the deal came under threat earlier this month when Jounce became the target of an "unsolicited" takeover bid from one of its rivals.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
Now, Jounce has confirmed its previous deal with Redx will not go forward and also announced it will cut its workforce by 84% in a move that will cost $6.5m.
It had previously planned to cut its workforce by around 57%.
Jounce is to be takeover by Concentra Biosciences in which Tang Capital Partners is the controlling shareholder.
Redx is a clinical-stage biotechnology company focused on the discovery and development of novel, small molecule, targeted therapeutics for the treatment of cancer and fibrotic diseases and the emerging area of cancer-associated fibrosis.
If the Redx merger had gone through, the group would have been known as Redx Inc and be solely listed on Nasdaq in the US.
It would have been led by current Redx CEO Lisa Anson while Redx chair Dr Jane Griffiths would have become the non-executive chair of the combined group.
Dr Griffiths said: "The board remains fully confident in the future of Redx despite being disappointed that the board of Jounce has now decided to recommend a cash offer for their company at this late stage.
"We strongly believe in the potential of our clinical stage assets and pipeline of development candidates.
"Whilst the offer for Redx has not formally lapsed under the UK Takeover Code, the board will consider all options available to it in line with our strategy."
READ MORE:
