The biotechnology firm G1 Therapeutics has ceased to be a publicly traded entity following its successful acquisition by the Danish pharmaceutical company Pharmacosmos. Trading of G1 Therapeutics shares was officially halted on all exchanges as the deal reached its formal conclusion.
A Lucrative Deal for Shareholders
Pharmacosmos secured the acquisition with a compelling cash offer of $7.15 per share. This price represented a significant 68% premium over the stock’s closing value on the day prior to the deal’s announcement. The transaction, which carried an aggregate value of approximately $405 million, received overwhelming support from G1 Therapeutics’ investors, with 75% of shareholders tendering their shares in favor of the agreement. The final acquisition was completed on September 18, 2024, prompting the immediate delisting of the company’s stock from the NASDAQ exchange.
Strategic Rationale Behind the Purchase
The primary driver for Pharmacosmos’s substantial investment is G1 Therapeutics’ flagship drug, COSELA®. This therapy is approved to protect cancer patients from specific, damaging side effects associated with chemotherapy and is currently authorized for use in treating lung cancer. The acquisition provides Pharmacosmos with full control over this strategic asset.
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However, the path to the deal was not without its challenges. Earlier this year, a key clinical trial investigating COSELA® for the treatment of breast cancer failed to meet its endpoints, dashing hopes for an expanded label and a broader market. This clinical setback coincided with mounting financial pressure on G1 Therapeutics as its cash reserves continued to diminish.
The Path Forward
With the acquisition now complete, the process of integrating G1 Therapeutics into Pharmacosmos is underway. The Danish company’s immediate focus will be on aggressively commercializing COSELA® within the United States, with potential future expansion into European markets. For former shareholders, the transaction provides a clear and final exit; they have received their payment in cash and must now seek other investment opportunities.
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