Shares of biopharma company, Poseida Therapeutics, Inc. (NASDAQ: PSTX), enjoyed an over 200 per cent lift on the back of the company’s news of its acquisition by Swiss pharma-giant Roche Holdings (OTCMKTS: RHHBY).
Originally announced on Tuesday, the deal values Poseida at up to USD$1.5 billion with shareholders pulling in USD$9 per share in cash, as well as a non-tradeable contingent value right (CVR) that could potentially translate into an extra USD$4 per share based on the company achieving certain milestones.
This acquisition price represents a substantial premium over Poseida’s closing stock price before the announcement, which was $2.86.
Roche’s acquisition validates Poseida’s strategic direction and the potential of its pipeline while providing immediate financial benefits to Poseida’s shareholders.
Poseida’s proprietary non-viral gene engineering technology, especially its allogeneic, TSCM-rich CAR-T therapies, has delivered promising early clinical results, particularly with its lead candidate, P-BCMA-ALLO1, for treating multiple myeloma. This collaboration demonstrates Roche’s confidence in Poseida’s technology and its future in cell therapy and genetic medicines.
“This exciting acquisition will allow us to drive further progress in allogeneic cell therapy while leveraging the successful existing partnership with Poseida,” said Levi Garraway, the chief medical officer and product development head for Roche.
“We are very encouraged by the early clinical data, and this acquisition builds on our joint progress to catalyse the development of potentially first and best-in-class cell therapies in oncology, immunology and neurology.”
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Roche gets access to Poseida’s GMP manufacturing capabilities
The two companies launched their partnership in 2022 to develop off-the-shelf CAR-T cell therapies. Roche will access Poseida’s good manufacturing practices (GMP) manufacturing capabilities and research and development assets, including P-MUC1C-ALLO1, an allogeneic CAR-T programme in Phase I for solid tumours, along with several genomic medicine pre-clinical candidates.
Once the transaction closes, Roche will gain access to Poseida’s GMP manufacturing capabilities, research and development portfolio assets, and expertise. This includes P-MUC1C-ALLO1, an allogeneic CAR-T programme currently in Phase I for solid tumours, as well as genomic medicine pre-clinical candidates and related technologies.
“Our interest in cell therapy is directly tied to our commitment to discovering and developing pioneering medicines with substantial patient benefit,” said Aviv Regev, head of Roche-group member, Genentech, Research & Early Development.
“We are excited to bring together cutting-edge scientific approaches and expertise to tap into the full transformative potential of cell therapy.”
Poseida employees will transition to the Roche Group, joining Roche’s Pharmaceuticals Division.
Wall Street analysts have given PSTX stock a Strong Buy consensus rating, with four Buys and no other ratings issued in the past three months, as shown in the graphic below. Following a 240 per cent rally in its share price over the past year, the average PSTX price target of USD 14 per share suggests 49 per cent upside potential.
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joseph@mugglehead.com
