TheraCryf PLC (AIM:TCF) shares rose 23% to 0.24p after the addiction-focused biotech disclosed it had received and rejected a conditional, non-binding indicative proposal to acquire its lead neuropsychiatry assets.
The board unanimously concluded that the approach, which targeted the company's Orexin-1 (Ox-1) receptor blocker and dopamine transporter programmes, did not reflect the current or future value of the assets and was not in the best interests of shareholders.
The Ox-1 programme, being developed as a treatment for addiction, is fully funded to generate all data required to support a Phase 1 clinical trial application by the fourth quarter of 2026.
TheraCryf is targeting the addiction treatment market, which it estimates to be worth $42 billion.
Chief executive Huw Jones said the board was confident the best route to delivering shareholder value was to continue developing its lead assets, and described the approach as encouraging evidence that the assets were attracting commercial attention.
Jones pointed to a recently announced transaction to acquire a clinical-stage orexin company in a separate disease area for up to $7.8 billion as a reference point for the value of orexin-modulating assets.