BridgeBio Pharma Terminates Merger Process With Its Subsidiary Eidos Therapeutics
October 14 2019 - 7:30AM
Business Wire
Agreement Not Reached Between BridgeBio Pharma
and Special Committee of Eidos Therapeutics Independent Directors;
BridgeBio No Longer Pursuing Acquisition
BridgeBio Pharma, Inc. (NASDAQ: BBIO), a clinical-stage
biopharmaceutical company focused on genetic diseases, announced
today that it was unable to come to an agreement with the Special
Committee formed by its subsidiary Eidos Therapeutics (NASDAQ:
EIDX), a clinical-stage biopharmaceutical company developing AG10
for the treatment of transthyretin amyloidosis (ATTR), to acquire
the outstanding common stock of Eidos that BridgeBio does not
already own (approximately 34% of Eidos’s outstanding shares).
Subsequent to an initial offer of 1.3 BridgeBio shares for each
Eidos share, the offer was raised twice, resulting in a final offer
equivalent to 1.5 BridgeBio shares for each Eidos share with an
option for Eidos shareholders to receive a portion of that
consideration in cash. Eidos shareholders were to have three
options to receive their consideration: all-stock, mixed
consideration of cash and stock, or all-cash subject to proration
such that the cash portion of the transaction would not exceed
approximately $110 million. The cash consideration was to have been
funded by BridgeBio with the use of acquisition financing, and was
therefore to have had a neutral-to-positive impact upon BridgeBio’s
runway post-close.
“We appreciate the hard work of the Eidos Special Committee in
evaluating our proposal,” said Brian Stephenson, Ph.D., CFA, chief
financial officer of BridgeBio. “At BridgeBio, we work hard to
balance opportunities for doubling down on attractive pipeline
programs with preserving our ability to pursue a diversified
pipeline, as the latter characteristic is valued deeply by many of
our investors. We continue to believe strongly in AG10, of which we
retain approximately 66% ownership, but we feel that beyond our
final offer there are superior ways for us to deploy capital, both
in and outside of our pipeline, to generate benefits for patients
and returns for our investors. Going forward, we will continue to
focus on creating value for patients and investors alike by
efficiently allocating capital to high-return genetic disease
projects where the science supports advancing therapeutic
candidates as rapidly as possible.”
“With this process now behind us, we will return to operating
BridgeBio and Eidos as two companies that share the sole focus of
bringing important medicines to patients with genetic disease,”
said Neil Kumar, Ph.D., founder and chief executive officer of
BridgeBio and chief executive officer of Eidos. “BridgeBio will
continue to empower Eidos with critical leadership and
infrastructure across the commercial, clinical operations, and
executive functions, while Eidos will remain laser-focused on
getting AG10, our potentially best-in-class stabilizer for ATTR-CM,
to patients. I thank the Special Committee for its hard work and
look forward to continuing our efforts around the Phase 3 trial for
AG10 and the analysis of data from our Phase 2 Open Label
Extension. Eidos and AG10 are a significant part of who we are at
BridgeBio, having been part of our plan since we founded the
company. We remain incredibly excited about the program and its
potential for patients with ATTR cardiomyopathy.”
About BridgeBio Pharma
BridgeBio Pharma is a team of experienced drug discoverers,
developers and innovators working to create life-altering medicines
that target well-characterized genetic diseases at their source.
BridgeBio was founded in 2015 to identify and advance
transformative medicines to treat patients who suffer from
Mendelian diseases, which are diseases that arise from defects in a
single gene, and cancers with clear genetic drivers. BridgeBio
pipeline of over 15 development programs includes product
candidates ranging from early discovery to late-stage
development.
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version on businesswire.com: https://www.businesswire.com/news/home/20191014005193/en/
Jared Levy/Warren Rizzi/Nate Johnson Sard Verbinnen & Co
(212) 687-8080 BridgeBio-SVC@sardverb.com
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