AVEO Oncology succumbs to takeover by Korean drugmaker

After several setbacks in its product development and partnering deals in the last few years, US oncology focussed biotech AVEO Oncology (Nasdaq: AVEO) has agreed to be acquired by South Korea’s LG Chem (KOSPI: 051910).

LG Chem will acquire AVEO for $15.00 per share in an all-cash transaction with an implied equity value of $566 million on a fully diluted basis, with the news sending the US firm’s shares up more than 40% to $14.69 in early trading this morning.

The transaction price represents a 43% premium to AVEO’s closing share price on October 17, 2022, as well as a 71% premium to its 30 trading day volume-weighted average price. The transaction, which was unanimously approved by both companies’ boards of directors, is expected to close in early 2023, subject to customary closing conditions, including approval by AVEO shareholders and receipt of regulatory approvals.