Biotech Values

[DewDiligence]

LLY acquires SGTX for $14.92/sh cash +CVR potentially_worth_$111.64 (not a typo):

https://investor.lilly.com/news-releases/news-release-details/lilly-acquire-sigilon-therapeutics

The buyout price, excluding the CVR, is a 280% premium to yesterday’s closing price, but it is a 17% discount to SGTX’s IPO price in Dec 2020 (#msg-159908787). SGTX’s share price had fallen 95% from its IPO price in late 2021, when it announced a 40% layoff (#msg-167109942).

In pre-market trading today, SGTX is up six-fold due to investors’ assessment of the CVR.

The nominal deal value, excluding the SVR is $35M, but it could reach $310M if the CVR pays out in full.

LLY is already an 8.5% shareholder in SGTX, pursuant to partnership the companies inked in 2018 to develop a cell therapy for T1D.