Sigilon Therapeutics Inc (NASDAQ:SGTX) shares rallied after that Eli Lilly and Company (NYSE: LLY) has agreed to acquire the company at a purchase price of $14.92 per share in cash (for a total of about $34.6 million).
Sigilon is also entitled to one right of contingent non-negotiable value (“CVR”) per share to receive up to an additional $111.64 per share in cash, for a total potential consideration of up to $126.56 per share in cash without interest (totaling up to approximately $309.6 million (excluding shares held by Lilly).
The transaction is not subject to any financing conditions and is expected to close in the third quarter of 2023.
Since 2018, Lilly and Sigilon have worked together to develop encapsulated cell therapies, including SIG-002, for type 1 diabetes.
In its fiscal 23 first-quarter earnings release, Sigilon said its near-term focus is efforts to develop SIG-002, its type 1 diabetes product candidate, which is being developed in In collaboration with Eli Lilly.
Sigilon has commenced IND enabling activities for SIG-002 and expects to begin non-human primate (NHP) studies in the second half of 2023. In addition, the company expects IND provisioning for SIG-002 in 2024.
price action: Shares of SGTX were up 488.80% at $23.14 last checked Thursday.
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