With Kezar Life Sciences’ lupus plans up in the air while the company investigates patient deaths, Concentra Biosciences has spied an opportunity to scoop up another troubled biotech.
Concentra’s parent company Tang Capital Partners already owns 9.9% of the biotech, and the same proportion of shares is also owned by both Tang Capital Management and their CEO Kevin Tang, according to a Securities and Exchange Commission filing.
Tang’s bid is to now acquire the remainder of Kezar’s shares for $1.10 apiece. The biotech’s stock closed trading Tuesday at 74 cents and hasn’t traded above $1 since March. The deal would also see Kezar’s current shareholders receive a contingent value right (CVR) to receive 80% of the proceeds from the out-licensing or sale of any of Kezar’s programs.
Concentra made a flurry of similar offers last year, acquiring Jounce Therapeutics and Theseus Pharmaceuticals while having its advances rejected by Atea Pharmaceuticals, Rain Oncology and LianBio.
Tang has a special interest in biotechs that have fallen upon hard times, and Kezar’s plans were certainly knocked off course in recent weeks when the company paused a phase 2 trial of its selective immunoproteasome inhibitor zetomipzomib in lupus nephritis in relation to the death of four patients. The FDA has since put the program on hold.
Work on zetomipzomib continues for now in the form of the phase 2 PORTOLA trial of patients with autoimmune hepatitis.
In a letter to Kezar’s directors, Kevin Tang said Concentra “has funds immediately available to execute this transaction.”
“Furthermore, Concentra has the expertise and resources to maximize the value of the CVR for the benefit of Kezar shareholders,” Tang added. “This may include, if appropriate, completing PORTOLA.”
Kezar’s directors have until the offer’s expiry on Oct. 18 to respond. Concentra already has another acquisition bid out in the field in the form of gene sequencing company Singular Genomics, which Tang has offered to buy at $12 per share.