Poseida shares surge on $1.5 billion Roche acquisition deal

On Tuesday, Poseida Therapeutics, Inc. (NASDAQ:PSTX) announced an agreement to be acquired by Roche Holdings, Inc. in a deal valued at up to $1.5 billion. Poseida's stockholders are set to receive $9.00 per share in cash at closing, with an additional non-tradeable contingent value right (CVR) to receive up to $4.00 per share in cash, contingent upon the achievement of certain milestones.

The acquisition will significantly enhance Roche's capabilities in the field of allogeneic cell therapy, as it brings Poseida's pioneering non-viral, T stem cell memory (TSCM)-rich CAR-T therapies and genetic medicines into its portfolio. These therapies are currently being developed for a range of conditions, including hematologic cancers, autoimmune diseases, and solid tumors.

The transaction terms stipulate that Roche will initiate a tender offer to purchase all outstanding shares of Poseida for the aforementioned cash payment and CVR. The completion of the deal is subject to customary closing conditions, which include the tender of a majority of Poseida's outstanding shares, regulatory review, and other standard conditions. The acquisition is expected to be finalized in the first quarter of 2025.

Poseida's Board of Directors has unanimously approved the merger agreement and recommends that stockholders tender their shares in the offer. Upon successful completion of the tender offer, Roche will acquire any remaining shares not tendered through a second-step merger, at the same price and conditions.

The move is set to expand Roche's pharmaceutical division with innovative therapies and a robust genetic engineering platform developed by Poseida.

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Source: Investing.com