Lumos Pharma, Inc. (LUMO) entered a merger agreement on October 23, 2024, to be taken private by Double Point Ventures LLC through a tender offer valued at $27.65 million.
As part of the agreement, Double Point Ventures will acquire Lumos Pharma’s outstanding shares of common stock for $4.25 per share in cash, a 7.59% premium over the stock’s last close, plus one non-transferable, unsecured Contingent Value Right (CVR) per share.
The CVR offers potential future cash payments based on LUM-201 sales milestones through 2037, business transactions, or agreements involving Lumos Pharma’s legacy products within 18 months.
Lumos Pharma is a biopharmaceutical company based in Austin, Texas, working on new treatments for rare diseases. Their main product, LUM-201, is an oral medication that helps boost growth hormone levels and is currently being tested for use in children with growth hormone deficiency.
Double Point Ventures is a venture capital firm based in Palm Beach, Florida, founded in 2023. The firm focuses on investing in diagnostic companies, medical device startups, digital health innovations, and healthcare services, particularly those involved in developing novel drugs.
After the merger is completed, expected before the end of 2024, Lumos Pharma will become an indirect, wholly-owned subsidiary of Double Point and will operate as a standalone business, continuing from its headquarters in Austin, Texas.
The acquisition price equates to Double Point paying 23.61 times the sales for Lumos Pharma.
Lumos Pharma announced that it has reached an agreement with the FDA on the design of its final Phase 3 trial for LUM-201. The global study, expected to begin in Q2 2025, will compare the growth rate of patients on LUM-201 to those on a placebo. The company believes this design reduces the risks for its Phase 3 program.
For a detailed breakdown of this M&A transaction, visit the Deal Metrics page here:
Deal Metrics for the acquisition of Lumos Pharma, Inc. (LUMO) by Double Point Ventures
The Deal Metrics page offers a comprehensive look at the merger, including:
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Editor’s Note: Baranjot Kaur contributed to this article