Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Birmingham Post
Birmingham Post
Business
Jon Robinson

Planned $425m merger under threat after rival's 'unsolicited' takeover bid

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:

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.