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Oldernowiser
I suspect the market will not get too excited as the odds of Karuna shareholders not approving the BMS takeover were very small
Hopefully some positive reaction though with the uncertainty now gone.
I would be delighted with a 10% uplift in the morning.
Exactly as I predicted.
Let's see what the markets think in the morning
ATB
Just checked the Bristol Myers Squibb website and its all there. Would not be surprised if we are suspended on opening tomorrow to avoid a disorderly market.
Price to double in short order - and still be cheap!!
Approved by Karuna shareholders. Significantly derisked the transaction now.
Approved today - expected to complete in first half of 2024. Positive news.
£2 being tested yet again. The BMS Acquisition being approved will solidify the price I’d think.
Hopefully we will get positive Puretech share price action today on the expected Karuna shareholders approval of the BMS offer at the EGM.
Lesley - £5 certainly isn't a pipedream and is possible in the near term. That would value PRTC at around £1.3 billion ($1.6 billion).
Cash post Karuna transaction will be $615 million with a further $150-200 million added from post FDA approval at the end of September totalling $750-800 million in the bank. The 40% stake in Vedanta could be worth between $200-400 million and an IPO would firm up that valuation. If they did IPO, I'd like to see PRTC reduce some of the holding and release more cash. LYT-100 has the potential to be a monster but the P2 needs to be a success first and statistically beat Pirfenidone by some margin. IF it does that, there will be a lot of interest, possible tie ups with a big pharma to reduce the risk or a buyout as a P3 ready drug. Estimated value for that could be north of $500 million.
There are a lots of IFs and BUTs in a fair valuation but £5-6 certainly looks doable in the next 12-18 months.
JSB
You are quite correct about the EGM as the Karuna Directors would have sounded out most if not all of the major Institutional Investors before calling the EGM and agreeing provisional terms with BMS.
The litigation is standard procedure in most US acquisitions with the motive being to sweeten the deal. Lawyers get a cut of any uplift in the acquisition price through litigation pressure ( blackmail) and maybe there will be a bone thrown at the EGM but I doubt it.
If there were other serious bidders around they would have moved by now.
The issue of the royalties to be paid to Puretech/ Royalty Pharma is a big issue for Bristol Meyers and that could lead to further corporate action.
ATB
£4 would be giving it away for me as a very term holder who came in at £4 so being very self centered £5 and upwards.Is that a pipedream?
I can’t see a small shareholder pausing a $14 billion deal. The argument presented doesn’t particularly hold water! I’m pretty sure I read that the ‘other bid’ was lower than BMS hence why they took that deal.
It would be the equivalent of PRTC getting taken over for £4. It would in most our eyes be too cheap but every shareholder will have made profit and most a significant chunk.
Maybe this is why £2.00 just won't support, as it has been frustrating.
Karuna CEO, Board Sued by Shareholder over $14B BMS Acquisition
Published: Feb 16, 2024
By Tristan Manalac
Courthouse_iStock, Mariakray
Pictured: Signage above a U.S. courthouse/iStock, Mariakray
Karuna Therapeutics shareholder Shannon Jenkins this week filed a lawsuit against the company and its leadership—including CEO Bill Meury—for agreeing to and endorsing the $14 billion merger with Bristol Myers Squibb.
Jenkins is seeking to prevent the transaction and is alleging that Karuna’s directors had failed to disclose crucial material information regarding the company’s financial projections and sales processes, according to a case summary from Law.com. The plaintiff also claims that the defendants have conflicts of interests.
The lawsuit, which was filed Tuesday with the U.S. District Court for Delaware, names eight other defendants in addition to Meury: Christopher Coughlin, James Healy, Jeffrey Jonas, Laurie Olson, Atul Pande, Steven Paul, Denice Torres and David Wheadon. All sit on Karuna’s board of directors.
BMS first moved to buy Karuna in December 2023, paying $330 apiece for all of the biotech’s outstanding shares for a total deal value of approximately $14 billion. In exchange, BMS gains ownership of Karuna’s highly anticipated muscarinic antipsychotic candidate KarXT, which is being developed for schizophrenia and psychosis in Alzheimer’s disease patients.
KarXT has a target action date in September 2024 and is expected to launch in the U.S. this year, with a potential market of approximately 1.6 million patients with schizophrenia, many of whom suffer from harsh side effects of existing treatments or respond poorly.
At the time of the merger’s announcement, Karuna’s board of directors unanimously approved the merger with the companies anticipating the deal closing in the first half of 2024, pending anti-trust clearance and other customary conditions—including shareholder approval.
Earlier this month, Karuna filed a proxy statement to the SEC inviting stockholders to an online special meeting on March 12 in order to discuss and vote on the merger with BMS. In the filing, Karuna’s board of directors unanimously recommended that shareholders vote in favor of the transaction, writing that the acquisition is “in the best interests of Karuna and its stockholders.”
In her lawsuit, Jenkins claimed that the proxy statement leaves out or misrepresents information important to the vote, including other proposed buyers, according to Fierce Biotech.
In the proxy statement, the board directors revealed that in October 2023, a “large multinational pharmaceutical company” approached Karuna with an acquisition offer at a “significant premium” to its closing price at the time. The filing does not disclose the identity of the company or the value of its initial offer.
Jenkins is looking to prevent the merger from pushing through until Karuna discloses all pertinent information to
Although no sign of counterbids so maybe it is not such a bad offer
A few doubts creeping in?I was a bit naive as I thought Kauna was a done deal
Dallo. The deal might not go through if :
• the lawsuit prevents it from doing so or
• the Karuna shareholders vote against it.
It’s clear there are a lot of disgruntled shareholders who feel the board are materially undervaluing KarXT. If the deal does not go through, I’m pretty sure the Karuna share price and most likely the PureTech share price will react negatively to the news. I will view this as a wonderful buying opportunity as it’s quite clear Karuna is worth at least $14B
Golf nut
In the unlikely event that Karuna shareholders vote against the BMS takeover , it only means that the price of the bid is too low and then would immediately open up a bidding war as other major Pharmas make their move.
Either way still great for Puretech imho.
Thanks golf, I agree. Also the listed market cap is $12bn currently, capturing the uncertainty there too.
Having said that, in either scenario it’s only a matter of time for prtc
Big date for PRTC shareholders on 12th March as that's the day the Karuna shareholders vote on whether to go ahead with the BMS merger. Its well documented that many of the shaeholders believe $14B is selling the company short so the vote is definietly not a formality. In addition, the lawsuit by shareholder Jenkins aginast the company could also throw a spanner in the works resulting in the merger failing. Fingers crossed the deal goes through or I think we will see PRTC sell off a bit. PRTC share price suggests market is certainly cautious and in wait and see mode
Ews & Insights
STOCKS
Zacks-Logo
Down -8.13% in 4 Weeks, Here's Why PureTech Health PLC Sponsored ADR (PRTC) Looks Ripe for a Turnaround
February 15, 2024 — 09:35 am EST
Written by Zacks Equity Research for Zacks ->
PureTech Health PLC Sponsored ADR (PRTC) has been beaten down lately with too much selling pressure. While the stock has lost 8.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
Here is How to Spot Oversold Stocks
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls
I get the impression the septics also expect this to boom 💥 big time
Not really useful linking or posting … outdated without links
I think you’ll find that’s old news. I get all PRTC updates live to my email.
Sorry wrong link lol 😂