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Jounce (JNCE) Up 41% on Buyout Offer From Concentra Biosciences
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Shares of Jounce Therapeutics were up 40.6% on Mar 15 after management announced that Concentra Biosciences (“Concentra”) had made an unsolicited and non-binding proposal to acquire the company’s entire equity stake.
Per the terms of the proposal by Concentra, shareholders of Jounce will receive $1.80 per share in cash. The shareholders will also receive a contingent value right (“CVR”) which is a right to receive 80% of the net proceeds payable from any license or disposition of certain of Jounce’s legacy programs.
This proposal is subject to limited confirmatory due diligence and is based on the assumption of at least $130 million in cash and cash equivalents at closing.
Tang Capital Partners is a controlling shareholder in Concentra while it owns around 10.2% stake in Jounce.
In the year so far, shares of Jounce have risen 34.2% against the industry’s 0.5% fall.
Image Source: Zacks Investment Research
The proposal comes weeks after management announced certain restructuring activities the company is undertaking to curb cash burn. Last month, Jounce announced that it would reduce its workforce by around 57% to advance the clinical development of its pipeline. These activities are being undertaken by the company as it lacks the resources needed to advance its pipeline development.
Alongside the workforce reduction decision, JNCE’s board of directors unanimously recommended a business combination with Redx Pharma via a proposed all share merger transaction. The combined entity will be referred to as “Redx Inc.” whose shares will be traded on the NASDAQ under the ticker symbol as REDX. The transaction was expected to close in second-quarter 2023. This combined company is expected to be worth $425 million in market value. Once the merger is completed, Jounce’s shareholders will own approximately 37% of share capital of the combined entity.
Following the completion of the transaction, the combined entity will focus on developing Redx’s RXC007, a next-generation selective ROCK2 inhibitor that is being evaluated in a mid-stage study for treating idiopathic pulmonary fibrosis (IPF). Jounce’s clinical programs will not be pursued in-house beyond the currently ongoing studies.
However, the offer by Concentra has raised uncertainty over closing of the Redx merger.
Estimates for Adaptive Biotechnologies’ 2023 loss per share have narrowed from $1.30 to $1.15 in the past 30 days. During the same period, the loss per share estimates for 2024 have narrowed from 99 cents to 94 cents. Shares of Adaptive Biotechnologies have risen 7.6% year-to-date.
Earnings of Adaptive Biotechnologies beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.75%. In the last reported quarter, ADPT delivered an earnings surprise of 24.32%.
In the past 30 days, estimates for CRISPR Therapeutics’ 2023 loss per share have narrowed from $8.21 to $7.54. Shares of CRISPR Therapeutics have risen 10.5% in the year-to-date period.
Earnings of CRISPR Therapeutics beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 3.19%, on average. In the last reported quarter, CRISPR Therapeutics’ earnings beat estimates by 39.22%.
In the past 30 days, estimates for EQRx’s 2023 loss per share have narrowed from 66 cents to 63 cents. In the year so far, shares of EQRx have declined 15.0%.
Earnings of EQRx beat estimates in each of the last four quarters, witnessing an earnings surprise of 34.99%, on average. In the last reported quarter, EQRx’s earnings beat estimates by 73.68%.
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Jounce (JNCE) Up 41% on Buyout Offer From Concentra Biosciences
Shares of Jounce Therapeutics were up 40.6% on Mar 15 after management announced that Concentra Biosciences (“Concentra”) had made an unsolicited and non-binding proposal to acquire the company’s entire equity stake.
Per the terms of the proposal by Concentra, shareholders of Jounce will receive $1.80 per share in cash. The shareholders will also receive a contingent value right (“CVR”) which is a right to receive 80% of the net proceeds payable from any license or disposition of certain of Jounce’s legacy programs.
This proposal is subject to limited confirmatory due diligence and is based on the assumption of at least $130 million in cash and cash equivalents at closing.
Tang Capital Partners is a controlling shareholder in Concentra while it owns around 10.2% stake in Jounce.
In the year so far, shares of Jounce have risen 34.2% against the industry’s 0.5% fall.
Image Source: Zacks Investment Research
The proposal comes weeks after management announced certain restructuring activities the company is undertaking to curb cash burn. Last month, Jounce announced that it would reduce its workforce by around 57% to advance the clinical development of its pipeline. These activities are being undertaken by the company as it lacks the resources needed to advance its pipeline development.
Alongside the workforce reduction decision, JNCE’s board of directors unanimously recommended a business combination with Redx Pharma via a proposed all share merger transaction. The combined entity will be referred to as “Redx Inc.” whose shares will be traded on the NASDAQ under the ticker symbol as REDX. The transaction was expected to close in second-quarter 2023. This combined company is expected to be worth $425 million in market value. Once the merger is completed, Jounce’s shareholders will own approximately 37% of share capital of the combined entity.
Following the completion of the transaction, the combined entity will focus on developing Redx’s RXC007, a next-generation selective ROCK2 inhibitor that is being evaluated in a mid-stage study for treating idiopathic pulmonary fibrosis (IPF). Jounce’s clinical programs will not be pursued in-house beyond the currently ongoing studies.
However, the offer by Concentra has raised uncertainty over closing of the Redx merger.
Jounce Therapeutics, Inc. Price
Jounce Therapeutics, Inc. price | Jounce Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Jounce Therapeutics currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the overall healthcare sector includeAdaptive Biotechnologies Corporation (ADPT - Free Report) , CRISPR Therapeutics (CRSP - Free Report) and EQRx , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Adaptive Biotechnologies’ 2023 loss per share have narrowed from $1.30 to $1.15 in the past 30 days. During the same period, the loss per share estimates for 2024 have narrowed from 99 cents to 94 cents. Shares of Adaptive Biotechnologies have risen 7.6% year-to-date.
Earnings of Adaptive Biotechnologies beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 10.75%. In the last reported quarter, ADPT delivered an earnings surprise of 24.32%.
In the past 30 days, estimates for CRISPR Therapeutics’ 2023 loss per share have narrowed from $8.21 to $7.54. Shares of CRISPR Therapeutics have risen 10.5% in the year-to-date period.
Earnings of CRISPR Therapeutics beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an earnings surprise of 3.19%, on average. In the last reported quarter, CRISPR Therapeutics’ earnings beat estimates by 39.22%.
In the past 30 days, estimates for EQRx’s 2023 loss per share have narrowed from 66 cents to 63 cents. In the year so far, shares of EQRx have declined 15.0%.
Earnings of EQRx beat estimates in each of the last four quarters, witnessing an earnings surprise of 34.99%, on average. In the last reported quarter, EQRx’s earnings beat estimates by 73.68%.