Shares of Cascadian Therapeutics Inc (USA) (NASDAQ:CASC) surged as much as 72% after agreeing to be acquired by Seattle Genetics, Inc. (NASDAQ:SGEN) for $10 per share, a 69% premium over the prior closing price.
Cascadian CEO Scott D. Myers commented, “This agreement represents a very positive outcome for patients with HER2-expressing cancers, our employees and for our stockholders […] Seattle Genetics has the development and commercial capabilities and the resources needed to more fully realize the potential of tucatinib as a new best-in-class treatment option for metastatic breast cancer, colorectal cancer and potentially for other indications.”
Seattle Genetics CEO Clay Siegall wrote, “This acquisition would enhance our late-stage clinical pipeline with a potentially best-in-class, orally available and highly selective TKI for patients with HER2-positive metastatic breast cancer […] Tucatinib would complement our existing pipeline of targeted cancer therapies, provide a third late-stage opportunity for a commercial product in solid tumors and expand our global efforts in breast cancer. It also leverages our broad expertise and resources to advance and expand the tucatinib program for patients. Beyond breast cancer, we believe there may be opportunities for tucatinib in other tumor types, such as HER2-positive metastatic colorectal cancer. Cascadian’s pipeline also includes a preclinical immuno-oncology agent. We look forward to welcoming the team at Cascadian Therapeutics and continuing the momentum of the tucatinib development program.”
On the ratings front, Cascadian stock has been the subject of a number of recent research reports. In a report released today, Cantor analyst Mara Goldstein maintained a Hold rating on CASC, with a price target of $10, which represents a slight downside from current levels. On December 8, Cowen’s Boris Peaker assigned a Buy rating to the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mara Goldstein and Boris Peaker have a yearly average return of 0.9% and 14.2% respectively. Goldstein has a success rate of 41% and is ranked #2518 out of 4757 analysts, while Peaker has a success rate of 48% and is ranked #370.
Cascadian is a clinical-stage biopharmaceutical company, focuses on the development of therapeutic products for the treatment of cancer. Its lead product candidate ONT-380, is an orally active and selective small-molecule HER2 inhibitor. It also develops preclinical product candidates in oncology using Chk1 kinase inhibitor and protocell technology.