Allakos Inc. (NASDAQ:ALLK), a biotechnology firm focused on developing antibodies to treat allergic and inflammatory diseases, has announced a definitive merger agreement with Concentra Biosciences, LLC. Under the terms of the agreement, Concentra will acquire Allakos for $0.33 per share in cash, representing a 50% premium to the current stock price of $0.22. The offer comes as Allakos shares have declined 82.5% over the past year, trading near their 52-week low. According to InvestingPro analysis, the stock has been showing signs of oversold conditions.
The Board of Directors of Allakos has unanimously approved the transaction, deeming it in the best interests of Allakos shareholders. A tender offer is set to commence by April 15, 2025, to acquire all outstanding Allakos common stock, with the merger expected to finalize in May 2025. The offer price falls within the current analyst target range of $0.30 to $0.40 per share. InvestingPro data reveals that while the company maintains a strong current ratio of 4.81, it has been rapidly burning through its cash reserves.
Allakos shareholders holding approximately 8.07% of the common stock have committed to tendering their shares and supporting the merger through signed support agreements. The completion of the tender offer is contingent upon several conditions, including a majority of the outstanding shares being tendered, the availability of at least $35.5 million in cash at closing (net of costs and liabilities), and other customary closing conditions.
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