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BEIJING - CASI Pharmaceuticals, Inc. (NASDAQ:CASI), a biopharmaceutical firm with a market capitalization of $32.69 million, reported Monday that it has received a revised preliminary non-binding proposal from its CEO, Dr. Wei-Wu He, to purchase the company’s business operations in China and certain product rights in Asia for $20 million, including the assumption of equivalent debt. The proposal comes as the stock trades near its 52-week low of $2.04, significantly below its 52-week high of $7.67.
The proposal, dated April 2, 2025, is an update to a previous offer made on June 21, 2024. It includes the acquisition of rights to pipeline products such as BI-1206, CID-103, and Thiotepa. The company’s special committee is evaluating the offer, which is subject to change and not guaranteed to result in a definitive agreement or transaction. According to InvestingPro analysis, CASI currently holds more cash than debt on its balance sheet, with analysts expecting sales growth in the current year.
Shareholders and potential investors are cautioned that no decisions have been made and there is no assurance of a transaction’s approval or completion. The company has stated it will not provide updates on the proposal unless legally required.
CASI Pharmaceuticals focuses on developing and commercializing therapeutics and pharmaceutical products, particularly in hematology oncology and for organ transplant rejection and autoimmune diseases. It operates in China through its wholly owned subsidiary, CASI Pharmaceuticals (China) Co., Ltd.
The announcement contains forward-looking statements, and the company faces various risks, including uncertainties regarding the proposal, operating losses, potential delisting from The Nasdaq Capital Market, and challenges related to global business execution, particularly in China. The company also highlighted the risks associated with product development, regulatory approvals, intellectual property, and dependence on third parties. InvestingPro data reveals the company’s weak financial health score of 1.26, with a concerning cash burn rate. Get access to 14 additional ProTips and comprehensive financial metrics with an InvestingPro subscription.
This news is based on a press release statement from CASI Pharmaceuticals.
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