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Funding agency All Blue Capital has approached Zymeworks Inc, a developer of antibody therapies for most cancers, with a $773 million acquisition supply.

In a regulatory submitting late on Thursday, All Blue mentioned it had made a non-binding supply for $10.50 per share in money, which represents a 116% premium to Wednesday’s closing value of $4.86.

There isn’t any certainty that Zymeworks will negotiate a deal, folks aware of the matter mentioned. The corporate unsuccessfully engaged with potential consumers final 12 months, the sources added, requesting anonymity.

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“Obtained an unsolicited, non-binding proposal from All Blue Falcons FZE and its associates to buy the corporate for $10.50 per share in money,” Zymeworks mentioned in an announcement, including that its board of administrators will rigorously evaluate the proposal.

Shares of Zymeworks jumped by greater than 45% in after-market commerce on Thursday after Reuters reported the bid.

Within the submitting, All Blue mentioned it’s presently in talks with potential co-investors and financing companions for the proposed acquisition.

Vancouver, Canada-based Zymeworks develops antibody therapies for various kinds of most cancers and is presently engaged on medical trials for quite a few its merchandise. It has repeatedly missed earnings estimates over the previous few quarters and its shares have misplaced about 84% of their market worth over the previous 12 months.

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“We consider that the corporate has suffered from extreme worth erosion because of quite a few severe missteps by an unfocused management with no clear technique for bettering efficiency,” All Blue mentioned in a letter to the corporate’s board of administrators on Thursday.

“We consider that Zymeworks stockholders deserve higher than the constant worth destruction they’ve suffered throughout this comparatively brief time frame,” they added.

In January, Zymeworks’ lately appointed Chief Government Kenneth Galbraith introduced that the corporate would want to instantly increase capital to proceed operations and that it could lay off 25% of its workforce.

All Blue Capital is a technology-focused funding agency, whose investments embody Airbnb, SpaceX, Lyft and Pinterest. All Blue presently holds a small stake in Zymeworks. (Reporting by Anirban Sen and Rhea Binoy in Bengaluru; Modifying by Greg Roumeliotis, Marguerita Choy, Sandra Maler and Sherry Jacob-Phillips)

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