August 18, 2020 Blog Post
This content courtesy of MD+DI.
4 Deals Stopped by COVID-19
Organova Terminates Tarveda Merger
So, let’s back up a bit with this one – back to 2019 when things were much simpler. Organova, a company that specializes in 3-D Bioprinted tissues, reset after it failed to generate decisive scientific data to support the prolonged functionality and therapeutic benefit of its liver tissue candidate. The company was exploring strategic options that would include the potential for an acquisition, merger, reverse merger, business combination, sale of assets, licensing, or other strategic transactions.
Then along came Tarveda Therapeutics, which Organova wanted to acquire in an all-stock transaction. The Watertown, MA-based company was very attractive and would give Organova an entry into the precision oncology medicines. However, Organova terminated the merger agreement in April at the height of COVID-19 concerns in the U.S. A Temporary Setback
OK, so technically this one could go on either list because even though there was a setback, the company was overly successful. Earlier this year, Neural Analytics (before it changed its name to NovaSignal), was in the process of raising funding. But then COVID-19 came along and forced the firm’s CEO Diane Bryant, to come up with another strategy.
“I opened a convertible note and raised $15 million in a very short period of time, in the middle of COVID-19,” Bryant said in an interview with MD+DI earlier this month. “That $15 million will take us well into next year. To date, we have a nice cushion of cash to keep everything productive and keep the innovation running.” Bryant said the company is now preparing for a series D round.
Nova Signal has developed the Lucid Robotic System, a technology that combines the Lucid M1 Transcranial Doppler (TCD) System with the NeuralBot System. It is an autonomous all-in-one robotic neurovascular ultrasound device designed to non-invasively search, measure, and display objective brain blood flow information in real-time. The NeuralBot won clearance from FDA and a CE mark in 2018. Alphatec Scraps EOS Imaging Deal Alphatec said after consideration and analysis of the ongoing market effects of the COVID-
19 pandemic, it is terminating its bid to acquire EOS Imaging because of material adverse effect resulting in circumstances that are no longer conducive to the completion of the transaction described in the terms of the agreement. Alphatec is pulling out of its agreement to acquire EOS Imaging because of negative impacts on the market caused by the novel coronavirus [COVID-19].
Carlsbad, CA-based Alphatec said based upon its assessment, it concluded that a “material adverse effect” has occurred, resulting in circumstances that are no longer conducive to the completion of the transaction described in the terms of agreement. Instead, Alphatec said the door is open for the two companies to collaborate. The surgical spine specialist announced in late February that it would pick up EOS Imaging for $88 million, plus debt retirement for $33.9 million, in a combination of cash and equity. Will the Thermo Fisher Scientific and Qiagen Merger Still Happen?
Will they, or won’t they? Talks of the merger between Thermo Fisher Scientific and Qiagen began heating up in November of 2019 – although at the time it was a rumor. Then on Christmas Eve, Qiagen terminated talks of the acquisition. However, an announcement about the deal came in March right as the COVID-19 pandemic was hitting the U.S. Then a few weeks ago, Thermo Fisher Scientific boosted its offer to acquire Qiagen by about $1 billion. The move came a few days after a hedge fund with a stake in Qiagen pushed for a better offer.
"Industry dynamics have changed considerably in the past few months, creating tailwinds and headwinds for our businesses,” Marc Casper, chairman, president and CEO, of Thermo Fisher Scientific, said in a release. “Both of our companies are playing important roles in helping customers to battle the COVID-19 pandemic. After careful consideration, we've decided to increase our offer for Qiagen to reflect the fair value of the business given the current environment. We remain confident that this transaction will create shareholder value and, importantly, provide meaningful benefits to our customers and society by combining our capabilities to combat infectious diseases and other healthcare issues. We continue to look forward to completing the transaction in the first half of 2021."
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