In May, biotech iTeos Therapeutics decided to close down after being abandoned by GSK over the disappointing mid-stage performance of its anti-TIGIT antibody belrestotug.
Concentra Biosciences is bringing iTeos Therapeutics back from the brink of closure with a takeover offer on Monday morning, making the Belgian biotech the latest target for the Kevin Tang-controlled company.
As per the acquisition agreement, Concentra will pay $10.047 for each outstanding share of iTeos common stock, an offer that comes just under iTeos’ closing price of $10.26 on Friday. Concentra is also tacking on a contingent value right (CVR) to its purchase proposal, which would give shareholders whatever is left of iTeos’ net cash in excess of $475 million. The one-time nontransferable offer also entitles iTeos shareholders to 80% of net proceeds from any sale of product candidates made within six months of the acquisition.
The board of directors of iTeos has agreed that Concentra’s offer is “in the best interests of all iTeos stockholders” and has unanimously signed off on the agreement, as per a Monday news release from the biotech. Concentra will commence its tender offer by Aug. 1 and expects the transaction to close in the third quarter.
From its closing price on Friday, iTeos jumped 1.71% to $10.44 by Monday midday. The biotech closed the day at $10.14, however, representing a 1.22% slump from its last price on Friday.
iTeos is one of the casualties of the tough TIGIT space. The Belgium-based biotech had been working with GSK under a June 2021 agreement, advancing the IgG1 monoclonal antibody belrestotug for non-small cell lung cancer and head and neck cancer. In May, however, belrestotug delivered disappointing outcomes in two mid-stage studies, pushing GSK to turn its back on the partnership.
At the time, iTeos initiated a targeted business review to beef up its financial position, looking for ways to maximize opportunities and value for shareholders. Days later, iTeos decided that closing down its business seemed to be the best option.
This troubled position made iTeos an ideal target for Concentra, a clean-up company backed by Tang Capital that has gained notoriety for buying struggling biotech companies. Earlier this month, for instance, Concentra successfully snapped up cell therapy specialist Cargo Therapeutics for $202 million upfront plus a CVR offer. In January, Cargo paused a Phase II trial for its CAR T candidate firicabtagene autoleucel after safety issues, prompting the biotech to also downsize by 50%. In March, Cargo laid off 90% of its remaining staff.
Aside from Cargo, Concentra also acquired IGM Biosciences earlier this month, Kronos Bio in May and Elevation Oncology in June.
