Concentra Biosciences, LLC cancelled the acquisition of 96.37% stake in Atea Pharmaceuticals, Inc..
May 29, 2023
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Concentra Biosciences, LLC submitted a non-binding proposal to acquire 96.37% stake in Atea Pharmaceuticals, Inc. (NasdaqGS:AVIR) for approximately $480 million on May 22, 2023. Concentra will pay $5.75 per share in cash, plus a contingent value right (“CVR”) representing the right to receive 80% of the net proceeds payable from any license or disposition of Atea's programs (the “CVR Products”). Concentra has access to significant capital resources through an arrangement with Tang Capital Partners, LP, its controlling shareholder. Remaining stake in Atea Pharmaceuticals is owned by Tang Capital Partners, LP; Tang Capital Management, LLC, a general partner of Tang Capital Partners and Kevin Tang, manager of Tang Capital Management and Chief Executive Officer of Concentra.
Proposal is subject to limited confirmatory due diligence and is based on the availability of at least $570 million of net cash and cash equivalents at closing as well as the execution of a definitive merger agreement. Concentra prepared to complete due diligence and negotiate a definitive merger agreement by June 15, 2023 and to close the acquisition by late July 2023. The offer will expire on May 31, 2023. Ryan A. Murr and James J. Moloney of Gibson, Dunn & Crutcher LLP acted as legal advisors to Atea Pharmaceuticals, Inc.
Concentra Biosciences, LLC cancelled the acquisition of 96.37% stake in Atea Pharmaceuticals, Inc. (NasdaqGS:AVIR) on May 30, 2023. The Board of Directors of Atea unanimously rejected the unsolicited proposal. The Atea Board of Directors unanimously concluded that the proposal fundamentally undervalues Atea and is not in the best interests of Atea or its shareholders.
Atea Pharmaceuticals, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on discovering, developing, and commercializing antiviral therapeutics to improve the lives of patients suffering from serious viral infections. The Company is engaged in is conducting a Phase 3 clinical trial evaluating bemnifosbuvir for the treatment of Coronavirus disease 2019 (COVID-19). It is also conducting a Phase 2 clinical trial evaluating the combination of bemnifosbuvir and ruzasvir for the treatment of hepatitis C virus (HCV). The bemnifosbuvir (AT-527), is an investigational, novel, orally administered guanosine nucleotide analog polymerase inhibitor that combines a unique nucleotide scaffold with novel double prodrugs for the intended purpose of inhibiting the enzymes central to viral replication. SUNRISE-3 is designed to evaluate bemnifosbuvir as monotherapy, but it is also exploring the effect of combination therapy in a smaller sub-set of patients.
ATEA PHARMACEUTICALS, INC. 
