Apexigen surges ~40% on all-stock acquisition by Pyxis Oncology
Nastassia Samal
Pfizer (PFE) backed Pyxis Oncology (NASDAQ:PYXS) is acquiring Apexigen (NASDAQ:APGN) in an all stock deal, for a total enterprise value of ~$16M.
Under the agreement, Pyxis will acquire Apexigen for an implied value of $0.64 per Apexigen share. Pyxis expects to issue ~4.4M of its common shares to Apexigen. For each common share of Apexigen, Pyxis will issue 0.1725 shares of its common stock.
Upon closing, Apexigen will become a wholly owned unit of Pyxis. Pyxis current stockholders will own ~90% of the combined company, while Apexigen's stockholders will own the remaining ~10%.
The acquisition will give Pyxis access to Apexigen's potential cancer drug sotigalimab and APXiMAB antibody platform. In February, Apexigen had disclosed that it was evaluating strategic alternatives and was also reducing its workforce by ~55%.
"This acquisition uniquely positions Pyxis Oncology at the forefront of antibody-drug conjugate (ADC) innovation by adding humanized antibody generation to our Flexible Antibody Conjugation Technology (FACT) ADC toolkit acquired from Pfizer, and expands our clinical pipeline into Phase 2 in select solid tumor types by leveraging our founding heritage of immuno-oncology expertise—all while maintaining our cash runway into 2025," said Pyxis President and CEO Lara Sullivan.
The companies noted that Pyxis leadership team will continue to be responsible for all executive positions, including Lara Sullivan as president and CEO, Pamela Connealy as CFO and COO, and Jan Pinkas as chief scientific officer.
In addition, Pyxis said that Jay Feingold is stepping down as chief medical officer, effective June 15, to pursue other opportunities. Feingold will remain an advisor to Pyxis until a successor is appointed.
The merger agreement has been approved by the boards of both companies and is expected to close by mid-2023, subject to conditions, including approval by the stockholders of Apexigen.
APGN +42.48% to $0.57 premarket May 24
PYXS -3.49% to $3.60 premarket