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Landos Biopharma (LABP): $21.48
Deal Size: $90.65 M + $75 M potential CVR
A week after we covered the acquisition of Fusion Pharmaceuticals (FUSN) by AstraZeneca’s (AZN), which included a $3 per share potential contingent value right (CVR) payment, we have another pharma deal with a much larger CVR. This time it is the pharma giant AbbVie (ABBV) acquiring Landos Biopharma (LABP) in an all cash deal for $20.42 per share and a potential CVR payment of $11.14 per share.
According to the press release announcing the deal, the deal is valued at $137.5 million without taking into account an additional $75 million attributed to the CVR. Based on the company’s shares outstanding from the last 10-K and the fact that it ended 2023 with $37.5 million in net cash on the balance sheet, I calculate the deal value at $90.65 million without the CVR.
Landos is a clinical stage biotech company that is working on oral therapies for the treatment of autoimmune diseases like ulcerative colitis and Crohn’s disease. Its lead drug NX-13 is currently in Phase 2 clinical trials. Considering the company is a pre-revenue biotech, it burned through $20.48 million of cash in 2023, which was a marked improvement from cash burn of $45.77 million in 2022. The company managed to do this by scaling back its SG&A expenses and slashing its R&D budget in half.