Ikena Oncology acquires Pionyr Immunotherapeutics

US cancer drug developer Ikena Oncology (Nasdaq: IKNA) today announced the closing of its acquisition of privately-held clinical-stage biotech Pionyr Immunotherapeutics in an all-stock transaction.

Ikena acquired all of Pionyr’s assets, including around $43 million in net cash, in exchange for shares of Ikena stock, in a combination of common stock and non-voting convertible preferred stock priced at $7.15 per share. Ikena’s shares dropped 3.7% to $4.75 on the news.

In June 2020, Gilead Sciences (Nasdaq: GILD paid $275 million for a 49.9% equity interest in Pionyr and an option to purchase the remainder for up to $1.47 billion in exercise fees and milestone payments. However, in March this year, Gilead waived its exclusive option to acquire Pionyr and certain other rights under the 2020 agreements. Gilead will retain its 49% equity stake in Pionyr as well as its right, under certain conditions, to review new data as it emerges. This set Pionyr free to pursue fundraising and partnering opportunities as part of its ongoing strategy.