ELYM - Eliem Therapeutics Enters $120 Million Private Placement to Acquire Tenet Medicines

2024-04-11 08:24:49 ET

DENVER, Colo., Apr 11, 2024 ( 247marketnews.com )- Eliem Therapeutics (NASDAQ: ELYM ) and Tenet Medicines announced that the companies entered into an agreement in which Eliem is acquiring Tenet, to form a combined company that focuses on advancing TNT119, a potentially best-in class anti-CD19 antibody, designed for a broad range of autoimmune diseases, including systemic lupus erythematosus, immune thrombocytopenia and membranous nephropathy.

Eliem entered into a $120 million private placement of common stock, 31,238,282 shares at $3.84 per share, to support the acquisition, which is expected to close concurrently with the closing of the acquisition.

“The Eliem board of directors has conducted a thorough review of strategic alternatives, and we believe the transaction we are announcing today with Tenet presents a compelling opportunity for our stockholders,” stated Andrew Levin, Executive Chairman of Eliem. “We believe TNT119 represents a promising clinical asset across multiple autoimmune diseases targeting markets where there is a need for improved treatment options.”

The combined company expects to have approximately $210 million immediately following the closing of the acquisition and the private placement.

“We are looking forward to joining Eliem as we strive to become a leading immunology and inflammation company focused on developing novel treatments for a broad range of autoimmune diseases,” said Stephen Thomas, Chief Executive Officer of Tenet. “Our team brings deep experience in immune disorders and on the heels of positive preliminary Phase 1 data for TNT119 in membranous nephropathy, we are excited to begin Phase 2 clinical development in systemic lupus erythematosus and immune thrombocytopenia. We believe that TNT119 has best-in-class potential and could be a transformative treatment option for many patients suffering from debilitating autoimmune disorders. This transaction and the support from leading life sciences investors will allow us to accelerate our development plans and continue advancing TNT119 for the potential benefit of patients.”

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