Surface Oncology shares jumped by more than 16% on Friday morning after it was revealed the clinical-stage immuno-oncology (I-O) company is being acquired by Coherus BioSciences (NASDAQ:CHRS).
The stock-for-stock transaction is valued at up to $65 million, approximately a three-fold premium over Surface’s anticipated net cash of $20 million to $25 million at closing, the two companies said in a statement.
They highlighted that the acquisition adds two clinical stage assets to Coherus' lineup: SRF388, a novel IL-27-targeted antibody currently being evaluated in Phase 2 clinical trials in lung cancer and liver cancer, and SFR114, a CCR8-targeted antibody currently in a Phase 1/2 study as a monotherapy in patients with advanced solid tumors.
Surface CEO Rob Ross said the acquisition represented a rare opportunity for two complementary organizations to join together and forge something greater than the sum of its parts.
“By augmenting Coherus’ existing capabilities and infrastructure with Surface’s innovative pipeline and deep I-O expertise, Coherus is well positioned to develop important I-O medicines for patients which deliver real value for the shareholders of both companies,” Ross said.
The transaction, which has been unanimously approved by the boards of directors of both companies, is expected to close in the third quarter of 2023.
Coherus CEO Denny Lanfear commented: “This transaction is well-timed, as it coincides with the accelerating growth of our biosimilar revenues driven by the launch of CIMERLI and near-term launch of YUSIMRY.”
“With the agreement to acquire Surface and the expected near-term approval of toripalimab, Coherus is positioned to become one of the very few I-O companies with demonstrated commercial expertise, significant product revenues, and unique, competitively positioned R&D programs addressing critical unmet medical needs,” Lanfear said in a statement.
Surface Oncology shares added 16.2% at $0.86 on Friday morning. Coherus stock, on the other hand, fell 16.4% to US$4.50.
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