LG Chem Scoops AVEO Oncology At 43% Premium

LG Chem Scoops AVEO Oncology At 43% Premium
  • South Korea-based LG Chem Ltd has agreed to acquire AVEO Oncology Inc AVEO for $15.00 per share in an all-cash transaction with an implied equity value of $566 million on a fully diluted basis.
  • The transaction price represents a 43% premium to AVEO's closing share price on October 17 and a 71% premium to its 30 trading day volume-weighted average price. 
  • The combination of LG Chem's Life Sciences division and AVEO is expected to create a global oncology organization.
  • Through this transaction, AVEO will immediately establish LG Chem's commercial presence in oncology through its lead product, Fotivda (tivozanib), which received FDA approval in March 2021 for relapsed or refractory advanced renal cell carcinoma (RCC) following two or more prior systemic therapies
  • Upon completion of the transaction, AVEO will establish and operate as the U.S. commercial foundation for LG Chem Life Sciences' oncology segment. 
  • The transaction is expected to close in early 2023.
  • LG Chem expects to finance the transaction with existing and available cash resources. Upon completion of the transaction, AVEO's shares will no longer trade on the Nasdaq.
  • Price Action: AVEO shares are up 39% at $14.57 during the premarket session on the last check Tuesday.

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