TIDMRTW
RNS Number : 3472W
RTW Venture Fund Limited
17 April 2023
LEI: 549300Q7EXQQH6KF7Z84
17 April 2023
RTW Venture Fund Limited
Portfolio Company Update: Prometheus Biosciences
Prometheus Biosciences enters a definitive agreement to be
acquired by Merck
RTW Venture Fund Limited (the "Company" or "RTW Venture Fund"),
a London Stock Exchange-listed investment fund focused on
identifying transformative assets with high growth potential across
the life sciences sector, is pleased to note the announcement by
Prometheus Biosciences, Inc. (NASDAQ: RXDX) ("Prometheus"), that it
has entered into a definitive agreement under which Merck, through
a subsidiary, has agreed to acquire Prometheus for $200.00 per
share in cash for a total equity value of approximately $10.8
billion, a c. 75% premium to the prior closing price. The
acquisition is subject to Prometheus Biosciences shareholder
approval and is expected to close in the third quarter of 2023.
Prometheus' full announcement can be found here.
Prometheus is the largest holding in RTW Venture Fund's
portfolio, representing c. 14.8% of NAV at 31 March 2023. As such,
the Company expects that this will translate into a material
accretion to the NAV.
Prometheus is a clinical-stage biotechnology company pioneering
a precision medicine approach for the discovery, development, and
commercialization of novel therapeutic and companion diagnostic
products for the treatment of immune-mediated diseases. The
company's lead candidate, PRA023, is a humanized monoclonal
antibody directed to tumour necrosis factor (TNF)-like ligand 1A
(TL1A), a target associated with both intestinal inflammation and
fibrosis. PRA023 is currently in Phase 2 clinical trials for
inflammatory bowel disease (IBD).
Roderick Wong, M.D., Managing Partner and Chief Investment
Officer at the Investment Manager, said:
" We are delighted to see Merck, who has one of the longest
histories of successful innovation in medicine, recognize the value
of Prometheus' leadership position in TL1a directed therapy, and
its broader pipeline for immune-mediated diseases.
This transaction brings to life RTW Venture Fund's investment
strategy. Having co-led Prometheus' crossover financing round in
November 2020 and then supported their IPO in March 2021, we were
able to build our conviction in Prometheus based on an in-depth
understanding of their compelling science and pioneering approach
to developing a potentially best-in-class treatment for IBD. This
conviction allowed us to maintain the position at size through
multiple inflection points up to now, despite a significant
increase in the share price over the past two years.
This will be the second position in the Company's portfolio to
be acquired by large pharma this year after Cincor's acquisition by
AstraZeneca was completed on 24 February. With low valuations and
large pharma's significant cash positions and emerging patent
cliffs, we would expect M&A to continue to accelerate."
For Further Information:
RTW Investments, LP +44 (0)20 7959 6361
Woody Stileman, Managing Director
Krisha McCune, Director, Client
Service
Buchanan +44 (0)20 7466 5107
Charles Ryland
Henry Wilson
George Beale
Numis +44 (0)20 7260 1000
Freddie Barnfield
Nathan Brown
Euan Brown
BofA Securities +44 (0) 20 7628 1000
Edward Peel
Kieran Millar
About RTW Venture Fund Limited:
RTW Venture Fund Limited (LSE: RTW & RTWG) is an investment
fund focused on identifying transformative assets with high growth
potential across the life sciences sector. Driven by a long-term
approach to support innovative businesses, RTW Venture Fund invests
in companies developing next-generation therapies and technologies
that can significantly improve patients' lives.
RTW Venture Fund Limited is managed by RTW Investments, LP, a
leading healthcare-focused entrepreneurial investment firm with
deep scientific expertise and a strong track record of supporting
companies developing life-changing therapies.
Visit the RTW website at www.rtwfunds.com for more
information.
***********
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