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CAMBRIDGE, Mass. - Kronos Bio, Inc. (NASDAQ:KRON), a biopharmaceutical firm specializing in small molecule therapeutics for cancer and other diseases, announced today it has reached a definitive merger agreement with Concentra Biosciences, LLC. Under the terms of the agreement, Concentra will acquire Kronos Bio for $0.57 per share in cash, along with one non-tradeable contingent value right (CVR) per share. The offer represents a significant discount to the current trading price of $0.89 per share. According to InvestingPro data, the company currently maintains a market capitalization of approximately $54 million.
The CVR entitles shareholders to receive a portion of net proceeds from the sale of specific product candidates and realized cost savings over a set period following the merger’s completion. The transaction was unanimously approved by the Kronos Bio Board of Directors after a review process aided by financial and legal advisors. InvestingPro analysis reveals the company holds more cash than debt on its balance sheet, with a healthy current ratio of 7.54, though it has been quickly burning through cash reserves.
A tender offer to acquire all outstanding shares of Kronos Bio is set to commence by May 15, 2025, with the merger expected to finalize mid-2025, subject to customary closing conditions. These include the tender of a majority of Kronos Bio’s outstanding shares and the availability of at least $40 million in net cash at closing. Officers, directors, and affiliates holding approximately 27% of Kronos Bio’s common stock have committed to support the merger through tender and support agreements. The company’s financial health score from InvestingPro is rated as "FAIR," with particularly strong liquid assets exceeding short-term obligations.
The forward-looking statements in the press release outline the potential outcomes and benefits of the merger, noting that actual results may vary based on various factors and market conditions. Kronos Bio has advised that investors should not place undue reliance on these projections.
The company’s filings with the Securities and Exchange Commission (SEC) provide further details on the risks and uncertainties related to the merger. Additional information about the tender offer will be available upon commencement, as required by SEC regulations.
This merger announcement is based on a press release statement from Kronos Bio, Inc.
In other recent news, Kronos Bio, Inc. has decided to terminate its headquarters lease agreement earlier than planned. Originally set to expire on August 31, 2026, the lease for their San Mateo, California location will now end on April 30, 2025. As part of this agreement, Kronos Bio will pay approximately $1.4 million to the landlord, MPVCA San Mateo LLC. This payment is slightly less than the $1.6 million that would have been due if the lease had continued to its original expiration date. The decision and its financial implications were detailed in a recent SEC filing by the company. Kronos Bio has not disclosed the reasons for this early termination or any plans for relocating its corporate headquarters. This development is part of the company’s ongoing strategic maneuvers in the pharmaceutical industry.
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