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Biomed offers to buy Athenex after loan default with Oaktree
Chicago, April 13 – Athenex, Inc. received an acquisition offer from Biomed Industries, Inc., according to a press release from Biomed with a copy of the offer.
Biomed is offering to buy all of Athenex’s common stock at $1.21 per share.
The offer letter cites recent challenges the company faces as justification for its offer price.
Athenex received notices of certain alleged defaults on the $44.7 million outstanding principal on its senior credit agreement with Oaktree in early March, the letter says.
Additionally, Biomed claims that the future of the company is uncertain in light of all clinical trials of the company’s drug candidates failing, royalty financing liability and long-term liabilities of $86.7 million, a comprehensive net loss of $102 million for the most recent fiscal year and a limited institutional following.
Athenex is a Buffalo, N.Y.-based biopharmaceutical company.
Biomed is based in San Jose, Calif. The potential acquirer has phase 2B and phase 3 drug candidates to treat Alzheimer’s disease that are valued at approximately $600 million. The acquisition would involve using Athenex’s current manufacturing facilities for pipelines for both companies.
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