Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
* * $ATNX Video Chart 08-07-2019 * *
Link to Video - click here to watch the technical chart video
Beginning to accumulate ATNX now. Will keep an eye on DCTH in the men time.
Listen to Simon Pedder
http://wsw.com/webcast/needham86/atnx/index.aspx
'Leo...' With all the excitement happening yesterday, I forgot to compliment you an this well thought out post. I had been looking into the "Chelsea Therapeutics" as well and can see and agree to the possible scenario you have constructed.
Great piece of work, thanks for sharing.
Good luck to you, and to us all.
Cheers!
Simon Pedder, former CEO and Consultant (new director of Delcath) /Roger Stoll (now director of Delcath)/ John Lau (Now CEO & Chairman of Athenex), both Directors of Chelsea Therapeutics International Tender Offer game (TO) @ Chelsea Therepeutics in 2014 appears to be possibility of a repeat here. Its interesting what happened in two year prior to TO filing. Take a look:
An offer to Purchase Chelsea was made in 2012 following which, Simon Pedder stepped down as CEO and became a consultant Chelsea. Roger Stoll and John Lau continued as Director. This was followed by Letter of Offer from Acquisition Corp and Luendenbeck in early 2013. Per letter below from April 12, 2013 to May 7, 2014 was the Due Diligence, solicitation of consent and structuring of the Tender Offer transaction period. May 23,2014 a formal TO was publicly announced.
https://www.sec.gov/Archives/edgar/data/1206828/000114420414033420/v379539_ex-d3.htm ;
FORMAL Tender Offer :SC TO filed
Offer To Purchase For Cash
All Outstanding Shares of Common Stock
of
CHELSEA THERAPEUTICS INTERNATIONAL, LTD.
at
$6.44 net per share, plus one non-transferable contingent value right for each share, which
represents the contractual right to receive a cash payment of up to $1.50 per share
upon the achievement of certain sales milestones,
by
CHARLIE ACQUISITION CORP.
a wholly-owned indirect subsidiary of
H. LUNDBECK A/S
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 12:00 MIDNIGHT,
NEW YORK CITY TIME, ON JUNE 20, 2014 (ONE MINUTE AFTER 11:59 P.M.,
NEW YORK CITY TIME, ON JUNE 20, 2014), UNLESS THE OFFER IS EXTENDED.
Charlie Acquisition Corp., a Delaware corporation (“Purchaser”) and a wholly-owned indirect subsidiary of H. Lundbeck A/S, a Danish corporation (“Lundbeck”), is offering to purchase all the issued and outstanding shares of common stock of Chelsea Therapeutics International, Ltd., a Delaware corporation (“Chelsea”), par value $0.0001 per share (the “Shares”), for (a) $6.44 per Share, net to the seller in cash, without interest (such amount, as it may be adjusted from time to time on the terms and subject to the conditions set forth in the Merger Agreement (as defined below), the “Cash Consideration”), plus (b) one non-transferable contingent value right (“CVR”) per Share, which represents the contractual right to receive a cash payment of up to $1.50 per Share upon the achievement of certain sales milestones (the Cash Consideration plus one CVR, collectively, the “Offer Consideration”), in each case subject to any required withholding of taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase (as it may be amended or supplemented, this “Offer to Purchase”) and in the related Letter of Transmittal (as it may be amended or supplemented, the “Letter of Transmittal” and, together with this Offer to Purchase, the “Offer”). This Offer is being made pursuant to the Agreement and Plan of Merger, dated as of May 7, 2014 (as it may be amended from time to time, the “Merger Agreement”), by and among Lundbeck, Purchaser and Chelsea. Pursuant to the Merger Agreement, as soon as practicable following the consummation of the Offer and the satisfaction or waiver of each of the applicable conditions set forth in the Merger Agreement, Purchaser will merge with and into Chelsea (the “Merger” and together with the Offer, the “Transactions”), with Chelsea continuing as the surviving corporation in the Merger and a wholly-owned indirect subsidiary of Lundbeck. As a result of the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (other than Shares owned (i) by Lundbeck, Purchaser, Chelsea (or held in Chelsea’s treasury) or by any direct or indirect wholly-owned subsidiary of Lundbeck, Purchaser or Chelsea, all of which will be cancelled without any conversion thereof or consideration paid therefor, or (ii) by any stockholder of Chelsea who is entitled to demand and properly demands appraisal rights pursuant to Section 262 of the General Corporation Law of the State of Delaware (the “DGCL”)) will be cancelled and converted into the right to receive the Offer Consideration. Under no circumstances will interest be paid on the Offer Consideration for the Shares, regardless of any extension of the Offer or any delay in making payment for the Shares.
THE CHELSEA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT CHELSEA’S STOCKHOLDERS ACCEPT THE OFFER AND TENDER THEIR SHARES PURSUANT TO THE OFFER.
The Board of Directors of Chelsea has unanimously adopted resolutions (i) authorizing and approving the execution, delivery and performance of the Merger Agreement by Chelsea and the transactions contemplated thereby, (ii) approving and declaring advisable the Merger Agreement, the Transactions and the other transactions contemplated thereby, (iii) determining that the Merger Agreement, the Transactions and the other transactions contemplated thereby, on the terms and subject to the conditions of the Merger Agreement, are fair to and in the best interests of Chelsea and its
stockholders, (iv) resolving that the Merger Agreement and the Merger shall be governed by Section 251(h) of the DGCL and that the Merger shall be consummated as soon as practicable following the consummation of the Offer and (v) recommending that Chelsea’s stockholders accept the Offer and tender their Shares pursuant to the Offer.
https://www.sec.gov/Archives/edgar/data/1206828/000114420414033420/v379539_ex-a1a.htm ;
Delcath - Pivotal ICC Trials/ Gemcitabine / Athenex
https://www.clinicaltrials.gov/ct2/show/NCT03086993
Delcath (DCTH) for ICC (Intrahepatic Cholangiocarcinoma) trials uses Gemcitabine injection and guess who is bringing it to market .....Athenex (ATNX)
This is a done deal. Jenny you can release the PR, we figured it out through publicly available information.
February 13, 2018
Athenex, Inc. (Nasdaq:ATNX), a global biopharmaceutical company dedicated to the discovery, development and commercialization of novel therapies for the treatment of cancer and related conditions, today announced recent product launches from Athenex Pharmaceutical Division (“APD”). These launches highlight the continued portfolio growth with an emphasis on oncology or oncology supportive therapy, a business strategy of Athenex’s commercial business as an effective supplement to its progressing clinical pipeline focused on oncology.
Athenex has brought the following products to market in its 503B (outsourced sterile preparations) and Specialty (finished-dose specialty injectable products) businesses:
503B Products
Epinephrine 2 mg and 4 mg in 250 mL in 0.9% Normal Saline (2 SKUs)
Norepinephrine 4 mg and 8 mg in 250 in 0.9% Normal Saline (2 SKUs)
Specialty Products
Caspofungin Acetate for Injection 50 mg per vial; 70 mg per vial (2 SKUs; vials)
Doxorubicin 5 mL, 25 mL, 100 mL; (3 SKUs; vials)
Etomidate Injection 20 mg per 10 mL; 40 mg per 20 mL; (2 SKUs; vials)
Gemcitabine for Injection 1 mg (1 SKU; vials)
Paclitaxel Injection 30 mg per 5 mL; 100 mg per 16.7 mL; 300 mg per 50 mL; (3 SKUs; vials)
Jeffrey Yordon, Athenex’s Chief Operating Officer and President of APD, commented, “These product launches underscore a continuation of our ongoing commitment to bring needed, quality oncology products to market on both the 503B and Specialty Injectables sides of our business. As part of a broader effort to build our commercial platform and capabilities, we will continue to look for opportunities to bring additional products focused mainly on oncology and oncology supportive care therapies to our customers throughout 2018 as well as generate additional revenue to help fund our clinical programs.”
http://ir.athenex.com/phoenix.zhtml?c=254495&p=irol-newsArticle&ID=2332087
The Athenex factory – supported by a $200 million grant from New York state – will be dedicated to manufacturing cancer therapies developed by Athenex and other companies(DCTH?).
Athenex said in its last conference call that it hopes to break ground on the factory by April 2018, and has also reported previously that work is expected to take place in two phases. The larger first phase will include the main 281,180-square-foot facility to include high-tech manufacturing space, warehousing and offices/labs, with an expected completion date of 2019. A second phase will involve a 39,000-square-foot expansion for manufacturing and offices/labs, with an estimated completion date of 2020.
Athenex's deal with New York state also included its "North American headquarters" in the Conventus building on the Buffalo Niagara Medical Campus, where the state spent $25 million to support office space and a pilot factory. The company has said it is roughly doubling the size of its factory in Newstead to 40,000 square feet. It is also developing two manufacturing facilities in China.
https://www.bizjournals.com/buffalo/news/2018/01/09/athenex-signs-general-contractor-for-320-000.html ;
Due Diligence on DCTH:
This S1/A is a lot cleaner than previously filed with two significant inducements:
1.Series A units offered with ability to buy more common shares using 1 year blackout warrants for two common shares (likely post FDA approval in early 2019). Warrants expire in 2023 (funds to ICC approval date in 2023).
2. Series B units offered only as a replacement to Series A at a penny discount. This is more like a back up plan, where if Series A is not fully subscribed, the investors with 4.99% holding can go upto 9.99%. All series B units offered will reduce only the unsold series A units from (1) above.
So what does this mean,
(A) Regardless of Series A or B units issued, at no point the common shares count will increase more than 250M under this offering. Hence the total outstanding will be.less than Authorized 500M (max of 473M = 223M current outstanding+ potentially 250M under this offering)
(B) Only institutional investors will be allowed to buy Series A or B.
(C) DCTH does not expect series A to be fully subscribed, hence Series B discount offer of the same thing to 4.99% holders as an incentive. If Series A units are fully subscribed, there will be no Series B units, since it has to replace unsold Series A units units one-for-one.
(D) After 1 year, in order for warrants to be exercised for common shares in excess of total outstanding 500M, DCTH will have to file for increase in Authorized Shares from 500M to about 1B shares ( this is what Sam refers to every time), is conditional upon many subjectivr things to occur. However DCTH have 1 year to figure that out. DCTH and ROTH are hoping that, in all likelyhood with FDA approval in late 2018, the pps will rise to such an extent that warrants offering will never be exercised.
So what does DCTH gets from this,
(i) Equity financing to fund operations and cash needs until next year
(ii) Institutinal investors, not irrational when it comes to trading.
(iii) With toxic financing gone, and funding for year in place, they can focus on real work of progressing FDA approval and increasing sales in Europe.
So what about my hypothesis of ATNX i.trested in DCTH: with so many positives and an impending FDA approval of CHEMOSAT , this deeply undervalued stock is ripe to pick-up and synergize some of the ecomonies of scale in operations by relocating to their upcoming massive manufacturing plant in Choutauqua Industrial Development (CIDA) in Dunkirk, NY by 2019/2020. This in addition to all the the benefits listed in my sticky note
http://ccida.com/athenex-presentation/ ;
Companies are exploring the clinical benefits of fusing new chemical entities in existing drugs on treatment of bile duct cancer. The key players in global bile duct cancer treatment market are also seeking regulatory approval of combination therapies for treatment of Cholangiocarcinoma. The study has recorded such developments while profiling the market’s leading participants, which include Pfizer, Inc., F. Hoffman-La Roche AG, Bristol-Myers Squibb Company, Teva Pharmaceuticals Industries Ltd., Eli Lilly and Company, Novartis AG, Sanofi, Fresenius Kabi AG, Mylan N.V., Kyowa Hakko Kirin Co Ltd., Intercept Pharmaceuticals, Inc., Accord Healthcare Inc., Delcath Systems Inc.,Celgene Corporation, and Johnson & Johnson.
http://www.satprnews.com/2018/02/05/global-bile-duct-cancer-treatment-market-will-reach-a-valuation-of-us-144-2-mn-between-2017-and-2025/ ;
DCTH acquisition/strategic partnership with ATNX imminent
The Prospects are looking very very good. The question I have is when would an acquirer like Athenex enter into strategic partnership with a company like DCTH for a majority stake, on whose Board their Chief Strategy Officer sits. At the time when the price is still very very low, while the prospect from trial perspective looking very very high or whem the successful trial results are baked in pps? Logical answer is former i.e. now. All the results and reports are already in front of ATNX via Pedder. ATNX Equity financing is roughly 60M now complete and for a Company like ATNX that has over a billion dollar market cap, spending 10 to 20 Million to get a majority stake in DCTH is like spending loose change cor synergies mentioned earlier.
The other recent acquisitions by ATNX of QuaDPharma, Polymed Therapeutics, Comprehensive Drug Enterprises, to name a few, had somewhat similar process.
I have not seen anything so far contrary to my hypothesis.
We shall see the PR coming out latest by next week, if not today.
Good things come to those who wait.
Cheers!
Delivery of shares today! Could be very interesting around here in a week or so when the announcements are made. Makes sense to have this finalized before the company releases it's Annual report, I believe due in March.
Thanks for Posting Leo!
IHMO
DCTH acquisition/strategic partnership with ATNX imminent
Athenex allocating proceeds for acquisition.
See the bold part under use of proceeds and delivery of common stock on Jan 29,2018. TIMING IS IMPECCABLE FOR COINCIDENCE
USE OF PROCEEDS
We estimate that our net proceeds from the sale of shares of our common stock in this offering will be approximately $61.2 million, or $70.5 million if the underwriters fully exercise their option to purchase additional shares, after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.
The principal purpose of this offering is to further increase our financial flexibility. We currently expect to use the net proceeds from this offering as follows:
• approximately $30.0 million for clinical development and regulatory activities for clinical products developed from our Orascovery platform;
• approximately $10.0 million for clinical development and regulatory activities for clinical products developed from our Src Kinase Inhibition platform;
• approximately $10.0 million for other clinical and pre-clinical research and development activities; and
• the remainder for working capital, capital expenditures and general corporate purposes.
We may use a portion of the net proceeds of this offering for the acquisition or licensing, as the case may be, of additional technologies, other assets or businesses, or for other strategic investments or opportunities, although we have no definitive understandings, agreements or commitments to do so as of the date hereof.
Delivery of the shares of our common stock is expected to be made on or about January 29, 2018
Why is Dr. Pedder on DCTH board? Is somethung brewing between Athenex and Delcath?
https://globenewswire.com/news-release/2017/11/20/1197421/0/en/Delcath-Enhances-Board-of-Directors-With-Appointment-of-Industry-Veteran-Dr-Simon-Pedder.html
Appears to be a very positive news for Athenex. Well done!
Followers
|
7
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
70
|
Created
|
01/18/18
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |