Salem Radio Network News Friday, May 27, 2022

Health

Exclusive-All Blue Capital in $773 million bid for Zymeworks -sources

By Anirban Sen

(Reuters) -Investment firm All Blue Capital has approached Zymeworks Inc, a developer of antibody therapies for cancer, with a $773 million acquisition offer, people familiar with the matter said on Thursday.

All Blue’s non-binding offer is for $10.50 per share in cash, a 116% premium to Wednesday’s closing price of $4.86, the sources said, requesting anonymity because the matter is confidential.

Zymeworks’ shares jumped by over 45% on Thursday in after-market trade after Reuters reported on the bid.

There is no certainty that Zymeworks, which carries roughly $65 million of debt, will negotiate a deal, the sources said. The company unsuccessfully engaged with potential buyers last year, the sources added.

A Zymeworks spokesperson did not immediately respond to a request for comment.

Vancouver, Canada-based Zymeworks develops antibody treatments for different types of cancer and is currently working on clinical trials for a number of its products. It has repeatedly missed earnings estimates over the past few quarters and its shares have lost about 84% of their market value over the past 12 months.

In January, Zymeworks’ recently-appointed Chief Executive Kenneth Galbraith announced that the company would need to immediately raise capital to continue operations and that it would lay off 25% of its workforce.

All Blue Capital is a technology-focused investment firm, whose investments include Airbnb, SpaceX, Lyft and Pinterest. All Blue currently holds a small stake in Zymeworks.

(Reporting by Anirban Sen in BengaluruEditing bt Greg Roumeliotis and Marguerita Choy)

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