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Jounce (JNCE) Up 21% on Accepting Concentra's Buyout Offer
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Shares of Jounce Therapeutics were up 21.2% on Mar 27 after management announced that the company entered into an agreement with Concentra Biosciences (“Concentra”) wherein the former will acquire the former’s entire equity stake.
Per the terms of the agreement, shareholders of Jounce will receive $1.85 per share in cash, which is at a premium of 22.5% over Jounce’s closing price on Mar 24. 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.
The deal, which is expected to be completed by second-quarter 2023, is based on the assumption that Jounce has at least $110 million in cash and cash equivalents. The deal has also been unanimously approved by Jounce’s board of directors.
Alongside this merger agreement, Jounce will also undertake a workforce reduction of nearly 84% employees. In turn, management will incur restructuring costs totaling around $6.5 million. This reduction is expected to be completed by the end of next month. The remaining employees will continue to work on completing the merger deal and the ongoing clinical studies sponsored by Jounce.
In the year so far, shares of Jounce have surged 64.9% against the industry’s 0.3% fall.
Image Source: Zacks Investment Research
By entering into the agreement with Concentra, Jounce rejected the deal for an all-share merger with Redx Pharma, which was previously unanimously approved by Jounce’s board of directors last month. The board has now withdrawn this approval and recommends that Concentra’s deal is in the best interest of all of Jounce’s shareholders.
Tang Capital Partners is a controlling shareholder in Concentra, while it owns around 10.2% stake in Jounce. Concentra, through one of its subsidiaries, will initiate a tender offer by Apr 7 to acquire the remaining outstanding shares of Jounce.
These buyout offers are being considered by Jounce as it lacks the resources needed to advance its pipeline development. Last month, Jounce announced that it would reduce its workforce by around 57% to advance the clinical development of its pipeline. These restructuring activities are being undertaken by management to curb cash burn.
Jounce Therapeutics currently carries a Zacks Rank #2 (Buy).Some better-ranked stocks in the overall healthcare sector include Certara (CERT - Free Report) , CRISPR Therapeutics (CRSP - Free Report) and EQRx . While Certara sports a Zacks Rank #1 (Strong Buy), CRISPR Therapeutics and EQRx carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Certara’s 2023 earnings per share have increased from 46 cents to $1.24. During the same period, the earnings estimates per share for 2024 have risen from 54 cents to $1.85. Shares of Certara are up 48.4% in the year-to-date period.
Earnings of Certara missed estimates in two of the last four quarters, beating the mark on one occasion while meeting the mark on another. On average, the company’s earnings witnessed a negative surprise of 3.25%. In the last reported quarter, Certara’searnings beat estimates by 14.29%.
In the past 60 days, estimates for CRISPR Therapeutics’ 2023 loss per share have narrowed from $8.21 to $7.54. Shares of CRISPR Therapeutics have risen 9.1% 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 60 days, estimates for EQRx’s 2023 loss per share have narrowed from 71 cents to 58 cents. During the same period, the loss estimates per share for 2024 have narrowed from 69 cents to 65 cents. In the year so far, shares of EQRx have declined 26.0%.
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 21% on Accepting Concentra's Buyout Offer
Shares of Jounce Therapeutics were up 21.2% on Mar 27 after management announced that the company entered into an agreement with Concentra Biosciences (“Concentra”) wherein the former will acquire the former’s entire equity stake.
Per the terms of the agreement, shareholders of Jounce will receive $1.85 per share in cash, which is at a premium of 22.5% over Jounce’s closing price on Mar 24. 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.
The deal, which is expected to be completed by second-quarter 2023, is based on the assumption that Jounce has at least $110 million in cash and cash equivalents. The deal has also been unanimously approved by Jounce’s board of directors.
Alongside this merger agreement, Jounce will also undertake a workforce reduction of nearly 84% employees. In turn, management will incur restructuring costs totaling around $6.5 million. This reduction is expected to be completed by the end of next month. The remaining employees will continue to work on completing the merger deal and the ongoing clinical studies sponsored by Jounce.
In the year so far, shares of Jounce have surged 64.9% against the industry’s 0.3% fall.
Image Source: Zacks Investment Research
By entering into the agreement with Concentra, Jounce rejected the deal for an all-share merger with Redx Pharma, which was previously unanimously approved by Jounce’s board of directors last month. The board has now withdrawn this approval and recommends that Concentra’s deal is in the best interest of all of Jounce’s shareholders.
Tang Capital Partners is a controlling shareholder in Concentra, while it owns around 10.2% stake in Jounce. Concentra, through one of its subsidiaries, will initiate a tender offer by Apr 7 to acquire the remaining outstanding shares of Jounce.
These buyout offers are being considered by Jounce as it lacks the resources needed to advance its pipeline development. Last month, Jounce announced that it would reduce its workforce by around 57% to advance the clinical development of its pipeline. These restructuring activities are being undertaken by management to curb cash burn.
Jounce Therapeutics, Inc. Price
Jounce Therapeutics, Inc. price | Jounce Therapeutics, Inc. Quote
Zacks Rank & Stocks to Consider
Jounce Therapeutics currently carries a Zacks Rank #2 (Buy).Some better-ranked stocks in the overall healthcare sector include Certara (CERT - Free Report) , CRISPR Therapeutics (CRSP - Free Report) and EQRx . While Certara sports a Zacks Rank #1 (Strong Buy), CRISPR Therapeutics and EQRx carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Certara’s 2023 earnings per share have increased from 46 cents to $1.24. During the same period, the earnings estimates per share for 2024 have risen from 54 cents to $1.85. Shares of Certara are up 48.4% in the year-to-date period.
Earnings of Certara missed estimates in two of the last four quarters, beating the mark on one occasion while meeting the mark on another. On average, the company’s earnings witnessed a negative surprise of 3.25%. In the last reported quarter, Certara’searnings beat estimates by 14.29%.
In the past 60 days, estimates for CRISPR Therapeutics’ 2023 loss per share have narrowed from $8.21 to $7.54. Shares of CRISPR Therapeutics have risen 9.1% 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 60 days, estimates for EQRx’s 2023 loss per share have narrowed from 71 cents to 58 cents. During the same period, the loss estimates per share for 2024 have narrowed from 69 cents to 65 cents. In the year so far, shares of EQRx have declined 26.0%.
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%.