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LOS ANGELES - Acelyrin Inc. (NASDAQ: SLRN), a biopharmaceutical company specializing in immunology treatments, has implemented a stockholder rights plan following Tang Capital Partners’ acquisition of a significant portion of its shares. This move comes as Tang Capital’s holdings reached 8.8% of Acelyrin’s outstanding common stock. According to InvestingPro data, the company’s shares, currently trading at $2.75, have seen a significant decline of over 66% in the past year, though analysis suggests the stock may be undervalued at current levels.
The rights plan, effective immediately, was approved by Acelyrin’s Board of Directors and is set to expire on March 12, 2026. It entails issuing one right for each share of common stock held as of the close of business on March 24, 2025. These rights will trade with Acelyrin’s common stock and will only become exercisable if an entity acquires 10% or more of the company’s outstanding common stock, or 20% in the case of a person reporting beneficial ownership on Schedule 13G. InvestingPro analysis reveals the company maintains a strong financial position with more cash than debt on its balance sheet, though it’s currently experiencing rapid cash burn - one of several key insights available in the comprehensive Pro Research Report.
Should the triggering percentage be reached, each rights holder, except the acquiring person whose rights will become void, will be entitled to purchase additional shares at an exercise price, with the market value being double that price. The plan also allows current owners exceeding the triggering percentage to maintain their shares without acquiring more.
Acelyrin’s Board and management team have stated their continued commitment to engaging with stockholders and maximizing their value. Stockholders are not required to take any action at this time, and further details will be available in a Form 8-K to be filed with the U.S. Securities and Exchange Commission.
Guggenheim Securities, LLC is serving as Acelyrin’s financial advisor, with Fenwick & West LLP and Paul Hastings LLP as legal counsel.
Acelyrin is primarily focused on the development and commercialization of transformative medicines. Its lead program, lonigutamab, is a monoclonal antibody targeting IGF-1R for the treatment of thyroid eye disease. With a market capitalization of approximately $277 million and analyst consensus showing strong buy recommendations, investors can access deeper insights and detailed financial analysis through InvestingPro’s extensive coverage of biotech companies.
This announcement is based on a press release statement, and it contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Investors are advised to read the SEC filings cited for a more detailed understanding of these risks.
In other recent news, ACELYRIN, Inc. has been at the center of significant developments. The company confirmed receiving an unsolicited buyout proposal from Concentra Biosciences, which includes an offer to purchase all outstanding shares at $3.00 each. This proposal comes amid ACELYRIN’s ongoing merger agreement with Alumis Inc., expected to close in the second quarter of 2025. On a different front, ACELYRIN has terminated its License and Collaboration Agreement with Affibody AB, ending exclusive rights to develop and commercialize the therapeutic product izokibep. This termination marks a shift in ACELYRIN’s business strategy as it moves away from this key asset in its product pipeline.
Analyst firms have also weighed in on ACELYRIN’s prospects. Citi has adjusted its price target for the company to $3.00 from $6.00, maintaining a Neutral rating due to uncertainties in the Phase 3 program for the drug lonigutamab. Similarly, H.C. Wainwright reduced its price target to $6.00 from $8.00, also keeping a Neutral rating, following updates from the Phase 1/2 study of lonigutamab. In contrast, Piper Sandler remains optimistic, reaffirming an Overweight rating with a $20.00 price target, citing the drug’s clean safety profile and potential as a treatment for Thyroid Eye Disease. These varied assessments highlight the mixed sentiment surrounding ACELYRIN’s future amid its recent strategic and clinical developments.
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