Shares of clinical-stage immunotherapy company Jounce Therapeutics (NASDAQ:JNCE) are soaring higher today after it confirmed an acquisition offer from Concentra Biosciences.
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Tang Capital is a controlling stakeholder in Concentra and also holds a 10.2% stake in Jounce. The non-binding proposal is for the acquisition of a 100% equity stake in Jounce for $1.80 per share in cash alongside a contingent value right (CVR).
The CVR incorporates the right to receive 80% of the net proceeds arising from any license or disposition of certain legacy programs of Jounce.
Last month, Jounce had announced a business combination with Redx Pharma in the form of an all-share merger transaction. The combined entity is expected to be listed on the NASDAQ as Redx Inc with Jounce investors holding 37% of its share capital.
This business combination is expected to be completed in the second quarter of 2023 and boards of both companies have recommended shareholders vote in favor of the combination.
While what happens next remains to be seen, Wall Street has a consensus price target of $5 on JNCE, implying a more than massive 222.9% potential upside in the stock. Shares of the company have already gained nearly 49% over the past five sessions.
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