Replies to post #205358 on Biotech Values

[mcbio]

Reasons to believe that uniQure is groomed to be acquired.

1) company is going through strategic review process
2) there are no plans to hire permanent CEO
3) new chairman of BOD is from Forbion (largest stake holder)
4) Forbion is known for M&A exists (Dezima & Akarna latest examples)

Interesting post. Have QURE on my watchlist but no position for now. How do we know point 2 for certain? Have they definitively stated no plans for permanent CEO? That seems kind of odd to have no plans for that unless, yes, something is possibly in the works.

[ghmm]

QURE:

While I don't disagree especially when they named the CFO interim and said not currently planning on a CEO search it should be noted that BMY owns 9.9% and has options to acquire another 10% which may complicate any deal (unless of course they are the acquirer). There are specific terms see below

Warrant Exercise: (i) the date on which uniQure receives from BMS the Target Designation Fees (as defined in the collaboration agreements) associated with the first six New Targets (as defined in the collaboration agreements) and (ii) the date on which BMS designates the sixth New Target. The Tenth Collaboration Warrant, which grants BMS the right to purchase uniQure ordinary shares up to a number of ordinary shares, in the aggregate, equaling a 19.9% ownership stake immediately after such purchase, can be exercised on the later of (i) the date on which uniQure receives from BMS the Target Designation Fees (as defined in the collaboration agreements) associated with the first nine New Targets (as defined in the collaboration agreements) and (ii) the date on which BMS designates the ninth New Target.
Warrant Price: The exercise price in respect of each warrant will be equal to the greater of (i) the product of $33.84 multiplied by a compounded annual growth rate of ten percent (10%); and (ii) the product of 1.10 multiplied by the volume weighted average price of the Company’s stock for the 20 trading days ending on the date that is five trading days prior to the date of a notice of exercise delivered by BMS.

QURE has said that they have exclusive rights for AAV5 for the liver (licensed from NIH) though the IP has limited life left (2019-2020) I've speculated BMRN may be a potential acquirer for this and other reasons (manufacturing also in insect viral line and desire to expand more into GT)

[ghmm]

QURE / BMRN / GT Manufacturing:

On the call today BMRN was asked a fair amount about their GT manufacturing. They mentioned QURE in part of their reasoning to do their manufacturing using Baculovirus as they have an approved method. They said that they did also manufacture in mammalian cells and noticed no difference in potency. Insect viral manufacturer is much more scalable and the other reason they went that direction.

ON my thinking of QURE being a good acquisition target for BMRN that does not seem likely for two reasons:
1) They are well on their way in setting up their own manufacturing expected to be ready late next year. While they would not disclose costs they said its in their 150M annual budget for this year and next year on capital spending.
2) Nothing near term on acquisition horizon though continue to look for deals especially things more earlier stage for 2023-4 timeline.