Tuesday’s premarket session saw AVEO Pharmaceuticals Inc. (NASDAQ: AVEO) shares soar 38.36% to $14.50. As soon as the news of a buyout attempt broke this morning, the price of AVEO stock shot up.
Who takes over AVEO?
Today, AVEO Pharmaceuticals (AVEO) and LG Chem, Ltd. announced that they had reached a binding agreement. According to the deal, LG Chem will purchase AVEO for $15.00 per share in a fully diluted transaction for $566 million in implied equity.
- A global oncology organization with a strong portfolio of cutting-edge products supported by complete capabilities from discovery to clinical, biologics manufacturing, and U.S. commercialization is anticipated to be created by the merger of LG Chem’s Life Sciences division and AVEO, at a scale capable of broadly delivering on its mission to improve the lives of cancer patients.
- Combining AVEO and LG Chem is anticipated to broaden the commercial reach of LG Chem Life Sciences into the United States, diversify its pipeline with a wide range of oncology therapies, and speed up LG Chem’s efforts to deliver ongoing growth through the creation and marketing of top-tier cancer treatments.
- With this deal, AVEO will quickly establish LG Chem’s commercial presence in the oncology market thanks to its main product, FOTIVDA (tivozanib), which was granted U.S. FDA approval in March 2021 for the treatment of adult patients with advanced renal cell carcinoma (RCC) that has relapsed or become resistant to two or more previous systemic treatments.
- Additionally, the combined business will possess much more resources to build out and market the strong clinical pipelines of cutting-edge cancer drugs from both businesses.
How will AVEO be utilized?
AVEO is the ideal partner for LG Chem Life Sciences because of its history of clinical success, the extensive pipeline of cutting-edge treatments, and its sustained growth trajectory following the successful commercialization of FOTIVDA. The deal will position AVEO to accelerate strong momentum in favor of the cancer patients it serves while providing AVEO shareholders with an attractive all-cash premium. As a result of its partnership with LG Chem, AVEO anticipates having access to considerable financial and development resources that will enable it to fully realize the enormous potential of its promising pipeline.
What will happen to AVEO?
After the deal is complete, AVEO Pharmaceuticals (AVEO) will create and run as the oncology division of LG Chem Life Sciences’ U.S. commercial foundation. The united AVEO firm will increase its oncology high-value and sustainable pipelines through this deal and provide cancer medicines to patients who are in need.