Cascadian Therapeutics Inc (USA) (NASDAQ: CASC) is having an overwhelmingly strong day in the market today, and for good reason. The company issued a press release this morning announcing acquisition news. Of course, the news caused excitement among investors, sending the stock on a run for the top. Today, we’ll talk about the news, what we’re seeing from CASC as a result of the acquisition, and what we’ll be watching for ahead.
CASC To Be Acquired By SGEN
As mentioned above, Cascadian Therapeutics is having an overwhelmingly strong start to the trading session this morning after the company announced that it would be acquired. According to the release issued early this morning, Seattle Genetics (SGEN) has entered into a definitive merger agreement to acquire the company. In the release, CASC said that under the terms of the agreement, SGEN will pay $10 per share to acquire the company. This comes to an acquisition value of approximately $614 million. The Boards of Directors of both companies have unanimously approved the transaction. In a statement, Clay Siegall, Ph.D., President and CEO at SGEN, had the following to offer:
This acquisition would enhance our late-stage clinical pipeline with a potentially best-in-class, orally available and highly selective TKI for patients with HER2-positive metastatic breast cancer… Tucatinib would complement our existing pipeline of targeted cancer therapies, providing a third late-stage opportunity for a commercial product in solid tumors and expand our global efforts in breast cancer. It also leverages our broad expertise and resources to advance and expand the tucatinib program for patients. Beyond breast cancer, we believe there may be opportunities for tucatinib in other tumor types, such as HER2-positive metastatic colorectal cancer. Cascadian’s pipeline also includes a preclinical immuno-oncology agent. We look forward to welcoming the team at Cascadian Therapeutics and continuing the momentum of the tucatinib development program.
The above statement was followed up by Scott D. Myers, President and CEO at CASC. Here’s what he had to offer:
This agreement represents a very positive outcome for patients with HER2-expressing cancers, our employees and for our stockholders… Seattle Genetics has the development and commercial capabilities and the resources needed to more fully realize the potential of tucatinib as a new best-in-class treatment option for metastatic breast cancer, colorectal cancer and potentially for other indications.”
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