(THRX) Theseus Pharmaceuticals Explores Strategic Alternatives

Thu Nov 16 2023 / 1 minute read

Theseus Pharmaceuticals ($139M market-cap) is a company focused on improving the lives of cancer patients through the discovery, development and commercialization of transformative targeted therapies.

Earlier this week, they announced that the company is exploring strategic alternatives. As part of this, they are laying off 72% of the workforce while retaining the head of R&D, William C. Shakespeare in a consulting capacity. Note that Mr. William will not receive any salary but his grant will vest as usual till the termination of his consulting contract. Based on the most recent filing, it appears that he owns 639,408 shares worth around $2M, so he seems well incentivized to be aligned with the common shareholders.

From OpenInsider, it also looks like the company has good institutional ownership, with Orbimed Advisors LLC owning roughly 40% of the company. What’s also interesting is that the company has a very clean balance sheet with very minimal debt. This is the rough back-of-the-envelope liquidation value I got to:

Note that I’ve marked down the IP to 0 but there might be some more juice to squeeze from potential sale of their IPs.

Disclosure: I own shares of THRX

Labels:failed biotechinvesting

4 comment(s)

13D filed by Tang, purchased $10M worth of stock: https://www.sec.gov/Archives/edgar/data/1191935/000121465923015548/d1124230sc13d.htm "On behalf of Concentra Biosciences, LLC, I am pleased to submit this non-binding proposal to acquire 100% of the equity of Theseus Pharmaceuticals, Inc. for $3.80 per share in cash, plus a contingent value right (“CVR”) representing the right to receive 80% of the net proceeds payable from any license or disposition of Theseus Pharmaceuticals’ programs (the “CVR Products”). We applaud your decision to preserve capital and pursue a strategic transaction with the objective of maximizing value for shareholders. We hope that you find that our proposal meets this objective."

Orbimed and Foresite also made an offer to take the company private: https://www.sec.gov/Archives/edgar/data/1745020/000095014223002837/eh230423669_13da4-thrx.htm, together with Tang this represents 50%+ ownership of the company. Good news for the common holders.

Management filed an 8-K this morning acknowledging the offers. I think a reverse merger is potentially off the table now.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1745020/000110465923128468/tm2333444d1_8k.htm THRX accepted Tang's tender offer for $3.90/share, plus an additional amount of $0.15/share + CVR. Nice outcome!