Bullish indicating open at $55-$60, IPO prices at $37
BEIJING - CASI Pharmaceuticals, Inc. (NASDAQ:CASI), a biopharmaceutical company with a current market capitalization of $29.21 million, announced today the sale of its entire equity interest in two China-based subsidiaries and certain product rights to Kaixin Pharmaceuticals Inc. for $20.0 million, including the assumption of equivalent debt. According to InvestingPro data, the company has been quickly burning through cash, making this transaction particularly significant for its financial stability.
The definitive Equity and Assets Transfer Agreement will transfer 100% equity interests in the subsidiaries and rights for BI-1206, CID-103, and Thiotepa in specified Asian regions. The transaction is contingent on customary conditions and the resolution of a judicial freeze related to ongoing legal disputes. With revenue declining by 15.77% in the last twelve months, this strategic move could help address the company’s financial challenges.
The independent directors’ committee, with financial and legal advisors, negotiated the agreement, which received board approval. The rights transfer for the products is expected to occur alongside the equity interests transfer.
Post-transaction, CASI will retain rights to CID-103 outside Asia, EVOMELA®, FOLOTYN®, CNCT19, and CB-5339, focusing on CID-103 for organ transplant rejection and autoimmune diseases. The Benchmark Company, LLC and Skadden, Arps, Slate, Meagher & Flom LLP are advising the committee, with Zhong Lun Law Firm and Global Law Office representing CASI and Kaixin Pharmaceuticals, respectively.
CASI specializes in therapeutics for hematology oncology, organ transplant rejection, and autoimmune diseases, aiming to launch medicines in Greater China and globally. The company operates in China through CASI Pharmaceuticals (China) Co., Ltd.
This announcement is based on a press release statement and contains forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These statements are subject to risks, uncertainties, and the successful completion of the transaction. The information reflects the company’s current expectations and projections about future events. InvestingPro analysis suggests the company is currently undervalued, with analysts expecting profitability this year. Get access to 10+ additional exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.
In other recent news, CASI Pharmaceuticals has been notified by Nasdaq of non-compliance with the minimum Market Value of Listed Securities requirement. The notice indicated that CASI’s market value fell below the $35 million threshold for 30 consecutive business days, triggering a compliance period until November 3, 2025, to rectify the situation. If CASI fails to meet this requirement, it risks delisting, although trading on Nasdaq remains unaffected for now. Additionally, CASI Pharmaceuticals has received a revised preliminary non-binding buyout proposal from its CEO, Dr. Wei-Wu He, to acquire the company’s business operations in China and certain product rights in Asia for $20 million. This proposal includes the acquisition of rights to pipeline products such as BI-1206, CID-103, and Thiotepa. The company’s special committee is currently evaluating the offer, but there is no guarantee of a definitive agreement. CASI has expressed its intention to take necessary actions to regain compliance and is considering the CEO’s proposal, although no decisions have been made.
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