Sesen Bio Inc (SESN)

[govprs]

What’s the company worth? .75 a share?

[Bill_ENG]

They finished selling off their IL-6 antagonist and announced they are not wasting time and money on a new trial with the FDA in the US.

What they are doing is preserving assets for the sale of the company .

They will take the employee count to a skeleton crew, only those needed to inventory and process the sales contract .

That is why they took the reverse off the table, no need to further dilute and raise money.

Jmo

[janeyH]

so much for making it to a buck!¡

[govprs]

https://www.businesswire.com/news/home/20220718005162/en/Sesen-Bio-Announces-Strategic-Decision-to-Pause-Clinical-Development-of-Vicineum%E2%84%A2-in-the-US

[janeyH]

On July 18, 2022, Sesen Bio, Inc. (the “Company”) announced that it has executed an asset purchase agreement (the “Asset Purchase Agreement”) with F. Hoffmann-La Roche Ltd and Hoffman-La Roche Inc. (“Roche”) pursuant to which Roche purchased all patent rights and know-how related to the monoclonal antibody EBI-031 and all other IL-6 anti-IL antagonist monoclonal antibody technology owned by the Company (collectively, the “Intellectual Property”) for up to $70 million. As a result of the Asset Purchase Agreement, the Company’s previous license agreement with Roche dated June 10, 2016 (the “Roche License Agreement”) was terminated resulting in no further diligence, milestone or royalty payment obligations under the Roche License Agreement. Prior to the termination of the Roche License Agreement, the Company had received $50 million in upfront and milestone payments from Roche.

[govprs]

Good info thanks

[InvestorPhilia4]

My Investment Premise:

1. Validated Drug Vicineum with Successful Trial Results and Near Complete CMC/BLA; FDA Approval Likely
a. Urologist direct administration of Vicinium will drive U.S. adoption as the standard of care for bladder cancer, initially as a second-line treatment (after re-occurrence, failure of other treatments). Direct treatment by the urologist is efficient for the healthcare system, convenient for the patient, and for the urologist, provides the ability to provide higher quality, continuous care while capturing more economic value in their practice.
b. Bladder cancer is tough to treat and tends to return. Current treatments are neither curative/permanent, nor effective for all patients, so an incrementally better drug/alternate tool should be approved. Also, patients are often faced with a “Sophie’s choice“ after failing existing approved treatments – surgery/bladder removal when frail and not likely to recover OR death. This is what I encountered at the end of the patient journey that I took with my father-in-law, who passed from bladder cancer. He was too frail to elect radical cystectomy to completely remove his bladder after 10 years of bladder cancer treatment and had no alternative. He passed in 2016. Vicineum has demonstrated efficacy with a good safety profile and patients deserve access to this life-saving treatment.
c. Further, Sesen has early indications that its drug candidates have other uses (solid tumors, head & neck, etc.).

2. Current $180 million Market Cap ~ equal to $170 million Cash On-Hand
a. Balance Sheet/Cash of $170 million on hand as of 3/31/2022 ~ approximately $0.85 per share (similar to book equity value of about $0.87 per share) both per FASTgraphs/FUNgraphs is a rounding error away from being equal to the closing share price of $0.906 on July 14, 2022, which is a market-cap of $180 million.

3. Attractive Risk-Reward Set-Up - share price ascribes ~zero value to…
a. Vicineum for bladder cancer treatment in the U.S.
b. Vicineum for bladder cancer treatment in Europe
c. Vicineum licensed to Qilu for Greater China: milestone payments and royalties after the imminent conclusion of the trial they are conducting in China
d. Vicineum bladder cancer treatment for the rest of the world
e. Potential for treatment of solid tumors, head & neck, etc.
f. Cash flows from a legacy product: an exclusive license agreement with Roche for legacy Interleukin-6 (IL-6) antagonist antibody technology owned by Sesen Bio. Following a $20 million milestone payment received in January 2022, Sesen Bio has cumulatively received $50 million in upfront and milestone payments, with an additional $220 million in potential future milestone payments, as well as royalty payment obligations on future sales, remaining under the Roche License Agreement. As part of the Roche License Agreement, Roche also maintains the right to fully acquire the IL-6 technology.

Ascribe your own upside for these items and quantify/risk adjust them if you see it this way as you see fit. There will be cash use should SESN continue to independently pursue commercialization and it may take some time to realize this value. A lump-sum transaction with Roche for the legacy product or strategic alternatives (licensing, partnering, sale) with respect to Vicineum for bladder cancer or other indications could provide a step-change realization of some of this value quickly. Clarifying uncertainty or capturing value from a strategic partner for even one of these value streams could easily cause a step-change favorable impact on the share price.

Sincerely, an investor with long-only positions in SESN continuously since 2018 that significantly increased my investment in 2022.

[govprs]

Hope it all unfolds in weeks not months

[Tex18]

Logic reasons they will file extension on listing requirement, settle lawsuit (which is egregious settlement but it’ll be behind them), then announce either qilu trial results and/or alternative outcome

[govprs]

Absolutely consolidating here in the low .90s It wants to go higher

[janeyH]

my bet is that it gets over a buck - just for a peek - real soon; just wish volume was tacking higher

[govprs]

Some one doesn’t want it over a buck today. It still might trickle back up towards hod.

[janeyH]

losing a little steam today - thought momo woulda taken it to a buck

[govprs]

And they cancelled the RS so some must be brewing

[govprs]

$SESN Type B meeting with the FDA on the 11th.

Basically hush. Assuming they are bringing that info to the negotiation table to answer remaining questions. Lawsuit settlement should shore up within a week.

At which time I believe the "strategic alternative" will be announced. https://t.co/Dyu6eA1lIU pic.twitter.com/IC3NgUL09l

— Samos Group (@SamosGroup) July 13, 2022

[govprs]

On May 3, 2022, Sesen Bio, Inc., (the “Company”) announced that it has initiated a process to review strategic alternatives with the goal of maximizing shareholder value. Potential strategic alternatives to be explored and evaluated during the review process may include the sale of the Company, a merger, acquisition or other business combination, a strategic partnership with one or more parties, or the licensing, sale or divestiture of some of the Company’s proprietary technologies. Pending any decision to undertake any strategic alternative, the Company is continuing its development activities in accordance with its existing business strategy

[MD3]

Sounds like a fluff statement from Tommy boy. He went from considering a sale to "strategic alternatives"

[Bill_ENG]

I'll take "Strategic Alternatives " for $100.

[janeyH]

Item 8.01 – Other Events.

On July 11, 2022, Sesen Bio, Inc. (the “Company”) participated in a Type B Meeting with the U.S. Food and Drug Administration (“FDA”). During the meeting, the Company and the FDA discussed outstanding items related to the Company’s proposed protocol and statistical analysis plan design elements for an additional Phase 3 clinical trial for Vicineum™ for the treatment of non-muscle invasive bladder cancer.

As the Company works to finalize its evaluation of an additional Phase 3 clinical trial, it will continue the process to review potential strategic alternatives with the goal of maximizing shareholder value.

[govprs]

No news on FDA meeting?

[govprs]

Pretty close. Wonder if they announce the outcome of the fda meeting on Monday and if it will be positive. Love to see this hit 1.2+ next week

[janeyH]

i bet this closes green - got a little momo

[Tex18]

After meeting and litigation settlement probly

[govprs]

Nice. Are we expecting news?

[Tex18]

Fda type B on 7/11

[jchords]

Getting closer

[mrplmer]

Qilu top line

[janeyH]

just trying to get over a buck.

[govprs]

Is there an fda meeting or some other event coming up?

[ADVFN_abullman]

And four other managers got this 40k benefit @ 69 cents. Well, the show must go on now ....

[ADVFN_abullman]

Insider Carrie bought 40k
https://ir.sesenbio.com/sec-filings/sec-filing/4/0001485003-22-000081

not much, but a nice sign.
Hoping to move forward now... HD

[smith10471]

I said this a month ago, Something good is brewing, volume is up hopefully it's a buyout at $5 to $10+ per share, hodl your shares!!!

[govprs]

Doesn’t

[govprs]

Does seem to want to break $1

[govprs]

Crazy pop today!

[MD3]

Best of luck! Hope you make bank. I'm sitting on the sidelines for now as there's less confidence in Tommy boy at the moment as compared to the last time

[govprs]

Trending down now

[govprs]

Ok so there’s a pattern. I originally bought in around $5 so I wasn’t around for that. I’ve averaged down so happily would like to see this over $1

[MD3]

Look at the past 2 times this stock has been at risk of delisting. He announced RS vote then pulled it and price shot up over a $1 to regain compliance. He is likely hoping for round 3

[govprs]

What gives the ceo confidence that RS isn’t needed to maintain Nasdaq? Some other shoe must be ready to drop? I understand why you might say a buyout is dependent on fda outcome

[Tex18]

I don’t expect anything until after meeting with FDA which is mid July I think

[MD3]

Good ol Tommy boy pulling the RS vote to No RS announcement. It's worked twice before so why not again eh Tommy boy

[govprs]

Merger announcement next week?

[jchords]

Nice trading

[Tex18]

RS is off the table

[govprs]

Just read proxy and voted. Now they want to do a reverse split. Everyone needs to vote that down

[govprs]

Yeah dilution to raise some cash in advance of the crash. Noticed ah trading was pretty strong to the plus side

Accumulation is happening it seems

[MD3]

Tommy boy hinted at a possible sale, something that should have happened a while back, but he was too busy diluting the hell out of the company

[govprs]

https://pennystocks.com/featured/2022/06/09/top-penny-stocks-to-buy-4-biotech-stocks-to-watch-now/

[govprs]

Depends on the news. Anything pending?