Bullish indicating open at $55-$60, IPO prices at $37
RINCON, Puerto Rico - Kent Lake PR LLC, a significant shareholder of Quanterix (NASDAQ:QTRX) Corporation (NASDAQ: QTRX), has publicly expressed its opposition to the company’s proposed merger with Akoya Biosciences (NASDAQ: AKYA), which currently trades at $2.14 per share and has lost over 61% in value over the past year. Holding 5.9% of Quanterix’s common stock, Kent Lake contends that the merger terms significantly undervalue Quanterix and are not in the best interest of its shareholders.
In an open letter to Quanterix shareholders, Kent Lake outlines several reasons for its stance against the merger. The investment firm argues that the deal assigns Quanterix an enterprise value of just $42 million, while Akoya, which they consider to be a weaker business, is valued at $168 million. According to InvestingPro data, Akoya’s financial performance has been concerning, with revenue declining by 5% and an EBITDA of -$36.37 million in the last twelve months. This valuation disparity comes despite Quanterix’s higher revenue, growth rate, and market opportunity.
Furthermore, Kent Lake views the merger as a bailout for Akoya at the expense of Quanterix shareholders, suggesting that Akoya’s financial challenges would have otherwise required it to seek financing at a substantial discount. InvestingPro analysis reveals several concerning factors, including rapid cash burn and negative analyst revisions for the upcoming period. The firm also raises concerns about the merger’s impact on Quanterix’s financial strength, noting that the combined company’s cash runway would decrease from 6.5 years to approximately 2.5 years, potentially leading to future dilutive equity raises. For detailed insights into Akoya’s financial health and 8 additional ProTips, subscribers can access the comprehensive Pro Research Report.
The letter also criticizes the timing of the merger, pointing out that Quanterix is at a critical juncture with its Alzheimer’s diagnostic expansion and needs to concentrate on FDA approval and commercialization rather than acquiring a struggling peer. Additionally, Kent Lake questions the purported synergies from the merger, given Akoya’s recent workforce reduction by 35% and declining revenue. Investors seeking deeper analysis of both companies can access comprehensive financial metrics, Fair Value estimates, and expert insights through InvestingPro’s advanced research tools.
Ben Natter, Managing Member of Kent Lake, states that the merger terms are indefensible and would permanently impair Quanterix shareholders. He urges the Quanterix Board to reconsider the merger and explore alternatives that could potentially deliver greater value, such as focusing on organic growth or pursuing a sale of the company at a valuation exceeding $1 billion.
Kent Lake is prepared to take action to prevent the merger, including nominating directors to the Quanterix Board at the 2025 Annual Meeting, and plans to communicate further with shareholders in the coming weeks. This news is based on a press release statement from Kent Lake PR LLC.
In other recent news, Quanterix Corporation announced the acquisition of Akoya Biosciences in an all-stock deal. The merger, set to create the first integrated solution for detecting protein biomarkers in both blood and tissue, is expected to enhance disease diagnostics and patient outcomes. The transaction is anticipated to generate approximately $40 million in annual cost synergies by the end of 2026, with the combined company projected to have a cash position of around $175 million.
Furthermore, Akoya Biosciences revised its indemnification agreements for non-employee directors and executive officers, enhancing protections and ensuring wider coverage for potential costs associated with legal proceedings. This move aligns with best practices in corporate governance, offering reassurance to those holding key leadership roles.
In terms of financial analysis, Piper Sandler adjusted its outlook for Akoya Biosciences, reducing the price target but maintaining an Overweight rating on the stock. This revision follows Akoya’s recent earnings report and highlights potential opportunities such as securing non-dilutive financing through companion diagnostic deals. These recent developments shed light on the strategic moves and financial prospects of both Quanterix and Akoya Biosciences.
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