Concentra Biosciences has announced two significant acquisitions in the biotechnology sector, entering into definitive merger agreements to acquire both iTeos Therapeutics and Kronos Bio in separate transactions valued at hundreds of millions of dollars combined.
iTeos Therapeutics Acquisition Details
iTeos Therapeutics, headquartered in Watertown, Massachusetts, will be acquired for $10.047 in cash per share plus a non-transferable contingent value right (CVR). The CVR provides shareholders with the right to receive 100% of iTeos' closing net cash in excess of $475 million and 80% of any net proceeds from dispositions of certain product candidates occurring within six months following the closing.
Following a strategic review process conducted with management and advisors, iTeos' board of directors unanimously determined that the Concentra acquisition is in the best interests of all stockholders and approved the merger agreement. TD Cowen is serving as exclusive financial advisor to iTeos, with Ropes & Gray LLP acting as legal counsel.
The transaction structure requires Concentra to commence a tender offer by August 1, 2025, to acquire all outstanding iTeos common stock. Closing conditions include the tender of shares representing at least a majority of outstanding shares, availability of at least $475 million of cash net of transaction costs and liabilities, and other customary conditions.
Kronos Bio Transaction Structure
In a separate but related move, Concentra has also agreed to acquire Kronos Bio for $0.57 in cash per share plus a contingent value right. The Cambridge, Massachusetts-based company, which has focused on developing small molecule therapeutics targeting deregulated transcription in cancer and autoimmune diseases, represents another strategic addition to Concentra's portfolio.
The Kronos Bio CVR provides more complex terms, including 50% of net proceeds from dispositions of KB-9558 and KB-7898 product candidates within two years of closing, and 100% of proceeds from dispositions of KB-0742, lanraplenib, and entospletinib prior to closing. Additionally, the CVR includes various cost savings provisions over a three-year period post-closing.
Kronos Bio's board of directors determined the acquisition is in shareholders' best interests following a review process with legal and financial advisors. Leerink Partners is serving as sole financial advisor, with Goodwin Procter LLP as legal counsel.
Transaction Timeline and Conditions
Both deals are structured as tender offers with similar closing conditions. For Kronos Bio, officers, directors, and affiliates holding approximately 27% of common stock have signed tender and support agreements, providing significant backing for the transaction.
The Kronos Bio tender offer must commence by May 15, 2025, with closing requiring at least $40 million of cash net of transaction costs and liabilities. The transaction is expected to close mid-2025, while the iTeos deal is anticipated to close in the third quarter of 2025.
Strategic Implications
These acquisitions represent a significant consolidation move by Concentra Biosciences, bringing together complementary assets in oncology and immunotherapy development. Gibson, Dunn & Crutcher LLP is serving as legal counsel to Concentra for both transactions, indicating a coordinated strategic approach.
The deal structures, with their contingent value rights tied to future product dispositions and cost savings, suggest Concentra may be positioning these assets for potential future monetization or partnership opportunities. The varying CVR terms reflect the different stages and potential values of each company's pipeline assets.
