FSTX - F-star sinks ~37% as CFIUS objects Sino-Biopharma deal
- U.K.-based biotech F-star Therapeutics ( NASDAQ: FSTX ) shed ~37% pre-market Thursday in reaction to a filing indicating that regulatory watchdog The Committee on Foreign Investment (CFIUS) issued an interim order blocking its planned sale to Sino-Biopharma ( OTCPK:SBHMY ) ( OTCPK:SBMFF ).
- In June, China's Sino Biopharmaceutical ( OTCPK:SBHMY ), a unit of invoX Pharma, agreed to acquire F-star ( FSTX ) in a $161M all-cash deal expected to close in H2 2022.
- However, the parties to the transaction have extended the timeline to close the deal amid U.S. regulatory scrutiny. The latest setback is CFIUS' threat to take action if the companies close the deal without resolving outstanding national security risks.
- Additionally, CFIUS has issued an interim order to block the deal pending the completion of its review. "The Interim Order is intended to provide CFIUS the opportunity to continue its review and investigation," the companies said in a regulatory filing.
- Previously, the deadline to close the deal was extended until Dec. 30 to obtain CFIUS clearance.
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F-star sinks ~37% as CFIUS objects Sino-Biopharma deal