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Stock impact report

‘Zombie' biotech buyer Xoma to acquire Generation Bio [Yahoo! Finance]

Generation Bio Co. - Common stock (GBIO) 
Company Research Source: Yahoo! Finance
Xoma Royalty, which has recently built a business out of acquiring struggling biotechnology companies, has secured its latest target. In announcement late Monday, Xoma said it has agreed to pay about $4.29 per share to acquire Generation Bio, a gene therapy developer that's currently worth less than its cash holdings. The per-share acquisition price is lower than Generation's $5.39 closing price on Monday. But Generation's shareholders will also receive a so-called contingent value right making them eligible to receive additional payments. Among those possible payouts are a share of any cash on hand at closing, if that total exceeds $29 million; savings on a Generation office lease; a piece of future milestones from a licensing deal with Moderna; and the proceeds, if any, should Xoma sell a delivery technology Generation had been working on. Generation's board of directors unanimously approved the deal. Generation raised $200 million in an initial public offering in 2020, rid Show less Read more
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