Concentra Biosciences, LLC entered a merger agreement on May 1, 2025, to acquire Kronos Bio, Inc. (KRON) in a deal valued at about $35 million.
Under the terms of the agreement, Concentra will acquire Kronos Bio for $0.57 in cash per share of Kronos Bio common stock, plus one non-tradeable contingent value right (CVR). The cash consideration is at a discount of 35.96% from the stock’s last close.
The potential payments depend on certain events: shareholders will get 50% of any money made if Kronos Bio’s drug candidates KB-9558 and KB-7898 are sold within two years after the deal closes; 100% of proceeds from any sale of drug candidates KB-0742, lanraplenib, or entospletinib if sold before the deal closes; 100% of cost savings realized before the deal closes; 80% of savings made within the first two years after closing; and 50% of savings from the third year after closing. All of these terms are governed by a CVR agreement.
Kronos Bio is a clinical-stage biotech company that develops new cancer treatments by targeting abnormal gene activity, with a focus on leukemia and certain solid tumors.
Concentra, last month, entered a merger agreement to acquire Allakos Inc. (ALLK) through a tender offer of $8.97 million. The Allakos tender offer will expire on May 14, 2025.
Similarly, Concentra will launch a tender offer by May 15, 2025, to acquire all outstanding shares of Kronos Bio common stock. The closing of the offer is contingent upon the availability of at least $40 million in cash.
Kronos Bio executives, who collectively hold about 27% of the company, have entered into tender and support agreements committing to tender their shares in the offer and to support the merger transaction.
The merger is expected to close mid-2025.
For the merger, Kronos Bio was advised financially by Leerink Partners and received legal counsel from Goodwin Procter. Concentra Biosciences obtained legal representation from Gibson, Dunn & Crutcher.
Concentra Biosciences is purchasing Kronos Bio at 4.36 times its sales.
For more comprehensive details of this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Kronos Bio, Inc. (KRON) by Concentra Biosciences, LLC
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article