Rain Oncology Goes Private Just Two Years After $120M NASDAQ Debut
Portfolio Pulse from Vandana Singh
Rain Oncology Inc (NASDAQ:RAIN) is set to be acquired by Pathos AI Inc. for $1.16 per share in cash plus a contingent value right (CVR) for potential additional cash payments of up to $0.17 per share. The offer is a 17% premium over Rain's stock price as of October 13, 2023. The deal, expected to close in January 2024, follows Rain's disappointing Phase 3 MANTRA data for milademetan, which did not meet its primary endpoint. Rain went public in April 2021. RAIN shares rose 2.54% to $1.21 in premarket trading.
December 14, 2023 | 12:26 pm
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POSITIVE IMPACT
Rain Oncology Inc is being acquired by Pathos AI Inc. at a 17% premium, with the transaction expected to close in January 2024.
The acquisition news typically leads to an increase in the stock price of the company being acquired, especially when the offer is at a premium to the current stock price. The 17% premium and the premarket price action suggest a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Johnson & Johnson's Yondelis was the standard of care in a Phase 3 trial where Rain Oncology's milademetan failed to meet the primary endpoint.
While the failure of Rain's drug in comparison to JNJ's Yondelis could be seen as indirectly positive for JNJ, the impact is likely to be minimal given JNJ's large portfolio and the specific nature of this trial.
CONFIDENCE 80
IMPORTANCE 30
RELEVANCE 20