Kinnate Biopharma (KNTE) (~$100MM market cap) is a scientific stage oncology firm, whereas not fairly a damaged/busted biotech below my typical definition (full white flag on growth 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 lately reported $180.4MM in money and securities as of 9/30, KNTE guided to having sufficient money runway by means of Q2 2026 within the restructuring announcement, implying an ~$18MM/quarter money burn price 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 present personal. Foresite is a reputable purchaser as they did one thing comparable with Pardes Biosciences (PRDS), shopping for that damaged biotech for about 85% of the online money worth tossing in a CVR for 80% of any proceeds from the sale of the event pipeline. One thing comparable 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