Eliem to buy Tenet and says combined business will have $210m cash
The deal is slated to add a clinical-stage programme directed towards treating unmet needs in autoantibody-mediated diseases.
The combined enterprise is expected to have around $210 million cash and equivalents, including $120m from a concurrent private placement of common stock from leading life sciences investors.
It plans to focus on advancing Tenet’s lead product, 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.
In support of the acquisition, Eliem has entered into a securities purchase agreement for the $120m private placement with a syndicate of new and existing institutional life science investors including RA Capital Management, Deep Track Capital, Boxer Capital, Janus Henderson Investors, Pontifax and Samsara Biocapital.
Eliem expects the overall $210m in the coffers will be sufficient to fund the combined company’s planned operations into 2027 and enable the potential attainment of key clinical and development milestones for TNT119.
The acquisition and private placement are expected to close in the middle of 2024, subject to approval by Eliem’s stockholders and other customary closing conditions.
Andrew Levin, Executive Chairman of Eliem, said: “The Eliem board has conducted a thorough review of strategic alternatives and we believe the transaction with Tenet presents a compelling opportunity for our stockholders.
“We believe TNT119 represents a promising clinical asset across multiple autoimmune diseases targeting markets where there is a need for improved treatment options.”
Stephen Thomas, CEO of Tenet, added: “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.”
Following the closing of the acquisition, the combined spearhead will include members of Tenet’s current leadership team, including Stephen Thomas as interim Chief Executive Officer, and William Bonificio, as interim Chief Business Officer. The board will comprise seven board members – the five existing Eliem directors, one board member to be named by Tenet plus Thomas.
