A Cheshire drug developer planned $425m merger with a US counterpart is under threat after a rival made an 'unsolicited' takeover bid.
Alderley Park's Redx Pharma and US-based Jounce Therapeutics originally announced the unanimously agreed deal last month.
However, it has now emerged that rival Concentra Biosciences, which is also based in the US, has made a bid to acquire Jounce Therapeutics.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
Concentra is seeking to buy 100% of the equity of Jounce for $1.80 in cash per share.
Tang Capital Partners, which is the controlling shareholder in Concentra, currently has a 10.2% stake in Jounce.
Shares in Jounce surged by around 40% after the approach was revealed.
In an update to the London Stock Exchange, Redx said its merger is expected to complete during the second quarter of 2023.
Most Read
Jounce said: "The board is committed to acting in the best interests of all shareholders, consistent with its fiduciary duties. A further announcement will be made in due course."
Redx is a clinical-stage biotechnology company focused on the discovery and development of novel, small molecule, targeted therapeutics for the treatment of cancer and fibrotic diseases and the emerging area of cancer-associated fibrosis.
Jounce is a clinical-stage immunotherapy company, dedicated to transforming the treatment of cancer by developing therapies that enable the immune system to attack tumours and provide long-lasting benefits to patients through a biomarker approach.
READ MORE:
Fund worth $100m launched by Dragons' Den star Steven Bartlett makes first investment
Robbie Williams-owned LMA to expand campus at London's Queen Elizabeth Olympic Park
Asda's £600m deal to buy the Co-op's petrol stations 'could mean higher prices or less choice'
Plans for £450m transformation and to create almost 2,000 jobs unveiled
British Gas owner Centrica extends life of Lancashire nuclear power station