Lisa Cook sues Trump over firing attempt, emergency hearing set
MOUNTAIN VIEW, Calif. - IGM Biosciences, Inc. (NASDAQ:IGMS), currently trading at $1.12 per share and down over 80% in the past year, announced Tuesday it has entered into a definitive merger agreement with Concentra Biosciences, LLC, which will acquire the biotechnology company for $1.247 in cash per share plus one non-tradeable contingent value right (CVR).
The CVR entitles shareholders to receive 100% of IGM’s closing net cash exceeding $82 million and 80% of any net proceeds from disposition of certain product candidates and intellectual property within one year following the transaction’s closing. According to InvestingPro data, IGM maintains a strong current ratio of 5.71, with liquid assets exceeding short-term obligations, though the company has been rapidly burning through its cash reserves.
IGM’s Board of Directors unanimously approved the acquisition. Concentra will commence a tender offer by July 16 to acquire all outstanding shares of IGM common stock.
The completion of the offer is contingent upon several conditions, including the tender of voting common stock representing at least a majority of outstanding shares, availability of at least $82 million in cash, and other customary closing conditions.
The transaction is expected to close in August 2025.
Wilson Sonsini Goodrich & Rosati, P.C. is serving as legal counsel to IGM Biosciences, while Gibson, Dunn & Crutcher LLP is acting as legal counsel to Concentra.
IGM Biosciences has focused on developing engineered IgM-based therapeutic antibodies. The company noted in its press release that the tender offer described has not yet commenced, and when it does, relevant documents will be filed with the SEC. InvestingPro analysis shows the company faces significant financial challenges, with an EBITDA of -$162.34 million in the last twelve months and analysts not expecting profitability this year. For deeper insights into IGM’s financial health and 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, IGM Biosciences, Inc. announced the termination of its collaboration and license agreement with Genzyme Corporation, a Sanofi entity. This agreement, originally established in March 2022, focused on the development and commercialization of IgM antibodies for diseases such as cancer and immunological disorders. The termination will take effect 30 days after the notice was received on May 5, 2025. As a result, IGM Biosciences has implemented significant cost-cutting measures, including reducing its workforce by 80% and closing most of its laboratory and office spaces. The company is currently exploring strategic alternatives and reorganization options to address the impact of this development. This termination marks a significant shift for IGM Biosciences as it navigates its next strategic steps. The details of this change have not been filed for purposes of the Securities Exchange Act of 1934. The company’s future plans remain uncertain as it adjusts to these recent changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.