BeyondSpring sells SEED Therapeutics shares for $35.4M

Published 28/01/2025, 13:06
BeyondSpring sells SEED Therapeutics shares for $35.4M

FLORHAM PARK, N.J. - BeyondSpring Inc . (NASDAQ: NASDAQ:BYSI), a biopharmaceutical company specializing in the development of cancer therapies with a market capitalization of $68.11 million and an impressive 85.67% return over the past year, has entered into agreements to sell part of its Series A-1 Preferred Shares in SEED Therapeutics Inc. for approximately $35.4 million. According to InvestingPro data, the company currently trades at $1.69 per share and appears undervalued based on Fair Value analysis. Following the transaction, BeyondSpring and its subsidiary SEED Technology Limited will hold an estimated 14.4% of SEED's outstanding shares.

SEED Therapeutics, a subsidiary of BeyondSpring, utilizes Targeted Protein Degradation (TPD) technology to develop treatments for cancer and neurodegenerative diseases. Since its co-founding with Eli Lilly (NYSE:LLY) in 2020, SEED has become a prominent player in the TPD field, as evidenced by its collaborations with Eli Lilly and Eisai Co (OTC:ESAIY). Ltd. and a recent Series A-3 financing round led by Eisai, which valued SEED at $100 million before the investment.

The proceeds from the share sale will support BeyondSpring's ongoing late-stage clinical trials of Plinabulin, its leading drug candidate. Plinabulin is a first-in-class anti-cancer agent that has shown promising results in over 700 cancer patients. It has been evaluated in several clinical studies, including the DUBLIN-3 phase 3 study, which demonstrated a significant overall survival benefit in non-small-cell lung cancer (NSCLC) patients.

Dr. Lan Huang, BeyondSpring's CEO, expressed the strategic advantage of the transaction, which allows the company to continue its clinical trials without shareholder equity dilution while maintaining a significant interest in SEED's future successes. InvestingPro analysis shows the company holds more cash than debt on its balance sheet, with analysts anticipating a 29.53% revenue growth in the current year. For more detailed financial insights and additional ProTips, investors can explore InvestingPro's comprehensive analysis tools.

The information in this article is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. BeyondSpring has cautioned that the transaction's anticipated benefits are not guaranteed and could differ from expectations due to several factors, including macroeconomic conditions and other risks outlined in the company's filings with the Securities and Exchange Commission. For comprehensive financial analysis and real-time updates on BeyondSpring's valuation metrics, visit InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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