Biotech firms Redx Pharma and Jounce Therapeutics to merge in $425 mln deal (updated)
23/02/2023 09:30
(Adds details on value of combined company, stock spilt plans
and ownership details)
Feb 23 (Reuters) -
British biotech firm Redx Pharma plc REDX.L and U.S.-based
Jounce Therapeutics Inc JNCE.O will merge to create a $425
million entity specialised in treating cancer and fibrotic
disease.
Redx shareholders will receive 0.2105 Jounce share in
exchange for each Redx share, the companies said on Thursday,
adding that the combined company would be called Redx Inc and
will be listed on Nasdaq.
Redx shareholders will own about 63%, while Jounce
shareholders will own 37% of the combined group, the statement
added.
Jounce said it intends to conduct a reverse stock split
of its shares in line with the combination, with a ratio of one
new share for every five outstanding stocks of Jounce.
The all-share merger is expected to be completed by the
second quarter.
The new company will be led by Redx CEO Lisa Anson and
will be headquartered in the UK, with a drug discovery and
clinical development team in the United States, the companies
said.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sohini
Goswami and Dhanya Ann Thoppil)
((Radhika.Anilkumar@thomsonreuters.com;))