Seagen warns investors against TRC Capital’s latest 'mini-tender offer'; BeiGene goes after a new indication for top PD-1 player
TRC Capital, which has selected various biotechs like Vertex and Biogen for the “mini-tender” treatment, jumped back into the game last month with an offer to buy shares in Seagen for $151. The problem, says Seagen, is that price was 4.28% lower than what the stock was selling for at the time they made the offer on Feb. 20, giving TRC a shot at an instant windfall.
So why sell for less than what it’s worth? Seagen notes warnings from regulatory authorities that these offers essentially try to trick investors into believing that they’re being offered a premium for the stock.
The SEC has cautioned investors about “mini-tender” offers in an investor alert. The SEC noted that these offers “have been increasingly used to catch investors off guard” and that many investors who hear about “mini-tender” offers “surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers.”
Unfortunately for Seagen, that old $151 price looks pretty good at today’s price, after the stock slid lower in recent days.
BeiGene adds a new pitch to expand China franchise for their PD-1
BeiGene is continuing to build up its China franchise for their PD-1 tislelizumab.
The top Chinese player has reported that regulatory officials in the Asian nation have accepted their application to market the drug as a second- or third-line treatment for non-small cell lung cancer. At the latest score, BeiGene had gathered 3 approvals and has 3 others under review as they continue to gather up new opportunities.
BeiGene attracted considerable attention for this PD-1 after Novartis recently anted up $650 million in cash to partner on it, gaining regional marketing rights.
“Results from our Phase III RATIONALE 303 trial demonstrated improved overall survival over chemotherapy in advanced NSCLC patients who have progressed after treatment with chemotherapy at its interim analysis, which we have been able to file quickly with the CDE for its review,” commented Yong (Ben) Ben, chief medical officer, immuno-oncology at BeiGene.