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Kinnate Biopharma (KNTE) (~$100MM market cap) is a scientific stage oncology firm, whereas not fairly a damaged/busted biotech beneath my normal definition (full white flag on improvement pipeline and announce strategic alternate options), Kinnate did do a restructuring in September which resulted in 70% of their workforce being laid off as KNTE reprioritized their analysis efforts to earlier stage packages. The corporate not too long ago reported $180.4MM in money and securities as of 9/30, KNTE guided to having sufficient money runway by way of Q2 2026 within the restructuring announcement, implying an ~$18MM/quarter money burn fee going ahead.
Usually this would not be of curiosity to me, however on 11/13, 46.2% joint house owners, Foresite and OrbiMed (who’re additionally teaming collectively on a potential Theseus Prescribed drugs (THRX) bid) indicated that they are exploring buying the remaining shares they do not at the moment personal. Foresite is a reputable purchaser as they did one thing related with Pardes Biosciences (PRDS), shopping for that damaged biotech for roughly 85% of the web money worth tossing in a CVR for 80% of any proceeds from the sale of the event pipeline. One thing related right here would end in a ~$2.65 bid right here, or 20% upside and will occur pretty rapidly within the subsequent month or two.
Disclosure: I personal shares of KNTE
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