Zymeworks Inc (ZYME.N) announced on Friday that its board of directors had rejected a $773 million buyout offer from investment company All Blue Capital, claiming that it undervalued the cancer medication development.
Shares of Canada-based Zymeworks – which develops antibody treatments for types of cancer – had lost nearly 70% of their value in 2022 before the offer.
All Blue’s $10.50 per share bid was a 116% premium to the stock’s last closing price at that time.
Investment firm All Blue Capital has approached Zymeworks with a $773 million acquisition offer.
The Canadian company is a developer of antibody therapies for cancer.
It has repeatedly missed earnings estimates over the past few quarters. Its shares have lost about 84% of their market value in the past 12 months.
Zymeworks Chief Executive Officer Kenneth Galbraith added that its non-binding, unsolicited activist proposal was timed opportunistically during a period of substantial market dislocation”.
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