A Cheshire drug developer planned $425m merger with a US counterpart is under threat after a rival made an 'unsolicited' takeover bid.
Alderley Park's Redx Pharma and US-based Jounce Therapeutics originally announced the unanimously agreed deal last month.
However, it has now emerged that rival Concentra Biosciences, which is also based in the US, has made a bid to acquire Jounce Therapeutics.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
Concentra is seeking to buy 100% of the equity of Jounce for $1.80 in cash per share.
Tang Capital Partners, which is the controlling shareholder in Concentra, currently has a 10.2% stake in Jounce.
Shares in Jounce surged by around 40% after the approach was revealed.
In an update to the London Stock Exchange, Redx said its merger is expected to complete during the second quarter of 2023.
Jounce said: "The board is committed to acting in the best interests of all shareholders, consistent with its fiduciary duties. A further announcement will be made in due course."
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.
Jounce is a clinical-stage immunotherapy company, dedicated to transforming the treatment of cancer by developing therapies that enable the immune system to attack tumours and provide long-lasting benefits to patients through a biomarker approach.
READ MORE:
Fund worth $100m launched by Dragons' Den star Steven Bartlett makes first investment
Robbie Williams-owned LMA to expand campus at London's Queen Elizabeth Olympic Park
Asda's £600m deal to buy the Co-op's petrol stations 'could mean higher prices or less choice'
Plans for £450m transformation and to create almost 2,000 jobs unveiled
British Gas owner Centrica extends life of Lancashire nuclear power station
