ResTORbio - medical stage biopharmaceutical company. Founded in 2016 year by Chen Shore, in the past as Deputy President for Global Business Development and Project Management of Teva and a popular venture investor in the field of medicine and biotech, and Joan Mannick, who were the executive director of the discovery of new indications at the Novartis Institute for Biomedical Research.
The company is listed on Nasdaq.
Capitalization of 1 June 2020 G. - approximately 80 US$ million.
Share price on 9 June 2020 of the year is 2,23 USD, with the maximum 23 July 2019 years in 11,45 USD, and a minimum 18 Martha 2020 0,87 USD (growth over the past two and a half months of about 230%). A turnaround takeover deal with Adicet Bio is currently underway.
The idea of ResTORbio is to use a combination of dactolizib and micro doses of rapamycin as a remedy for aging - in general (and in particular from neurodegenerative diseases) theoretically due to, allows you to make a synthetic product and get income on it.
INDIVIDUAL STUDY
The founders, the main heads of the company come from large pharmaceutical organizations, combine competencies in management, market operations in biotech startups and clinical trials.
Co-founder and president of the company.
Bachelor's Degree in Economics and Accounting from Haifa Institute, Institute of Tel Aviv "specializing in biology", MBA.
Shor has experience in negotiating agreements on turnaround takeovers, the same planned merger of ResTORbio with Adicet Bio. Prior to that, Shor served as head of state, Chief Executive Officer of Synta Pharmaceuticals prior to the merger with Madrigal Pharmaceuticals in July 2016 of the year (more details about the deal further). From september 2012 years to December 2014 Shore served as President and CEO of Novalere FP, Inc., companies, which specializes in the treatment of pre-commercial allergies. From september 2011 years to October 2012 Shore served as Chief Business Officer at Eleven Biotherapeutics, growing therapeutic company. Since March 2009 years to September 2011 Shchor served as Deputy President for Business Development at Teva Pharmaceuticals. He was previously a partner at Yozma Venture Capital, an Israeli venture capital firm with investments in biotech and digital innovation. A number of start-up companies are listed for IPO, the rest are sold to serious participants. Shor managed strategic operations in excess of 8 billion US dollars with such companies, like GSK, Amgen, Pfizer, Merck KGaA и Cephalon.
Serves on the Board of Directors of Brainstorm Cell Therapeutics Inc., public biotech company listed on Nasdak.
Following the merger, Shore will serve as President and CEO.
Co-founder and Chief Medical Officer of ResTORbio.
M.D. Harvard Medical School.
Before coming to resTORbio, Dr. Mannik was Executive Director of the New Indications Division of the Novartis Institute for Biomedical Research. Before coming to Novartis in 2010 Dr. Mannik was Medical Director at Genzyme, working in multiple therapeutic areas and as a lecturer at Harvard Medical School and University of Massachusetts School of Medicine. Her laboratory, sponsored by the National Institutes of Health (NIH), focused on the role of protein S-nitrosylation in physiology and pathophysiology.
Following the merger, Mannik will become the head of the merged infectious disease company, which indirectly indicates that, as she, and partners believe in dactolizib, as an antiviral drug with good potential. ADICET itself has a strong set of researchers, managers and managers with experience in key positions in large pharmaceutical companies and startups, proven successful. Since the subject of this analysis is Restorbio, we will not describe in detail the management of ADICET.
EXCHANGE ANALYSIS
Share price on 4 June 2020 of the year is 2,14 USD, with the maximum 23 July 2019 years in 11,45 USD, and a minimum 18 Martha 2020 0,87 USD (growth over the past two and a half months about 230%).
The fall in share value occurred after the announcement in November 2019 years on the unsuccessful results of the third phase of clinical trials of the drug company RTB101 in the prevention of clinically symptomatic respiratory diseases in people of age 65 years and older and the decision to curtail this line of research.
The catalyst for the growth in the value of shares was the announcement 29 April 2020 merger with biotechnology company Adicet Bio.
Adicet bio participated in 3 investment rounds, attracted 145 mUSD, last investment round in the amount 80 mUSD took place in September 2019 of the year.
As a result of the transaction, Adicet bio will receive a listing.
To find potential partners, JMP Securities LLC was hired as a strategic consultant., what was announced in February 2020 of the year. It was this company that acted as financial advisor in the merger transaction.
Deal with Adicet bio
The deal goes through a reverse takeover scheme (reverse merger или reverse IPO), when a private company takes over a public company with the subsequent listing of the combined company on the exchange. This way is faster and cheaper., than a standard IPO.
The combined company will operate under the Adicet Bio name and will focus on developing cancer therapies. (ADI-001, ADI-002)
ResTORbio shareholders will receive 25% shares of the combined company, shareholders of Adicet Bio - 75% Shares.
The trade must be closed in the second half 2020 of the year.
In practice, the timing of closing such transactions: from 3,5 to 5,5 Months.
The upcoming deal has been announced 29 April.
Adicet Bio's investors include Novartis Venture Fund and OrbiMed, who are also shareholders of ResTORbio. Maybe, this was the reason for the dissatisfaction of minority shareholders with the potential understatement of the value of ResTORbio shares, in whose interests Brodsky Law Firm & Smith, LLC in May 2020 of the year announced the start of an investigation into the transaction, which may delay the process somewhat.
Experience of similar deals
Chen Shore has already done a similar deal in 2016 year - the merger of the public company Synta Pharmaceuticals with the private Madrigal Pharmaceuticals in July 2016 of the year. The deal was announced 19 April 2016. The deal is closed 22 July 2016.
Then the scheme was about the same: 36 % shares of the combined company were received by Synta Pharmaceuticals, 64 % - transferred to shareholders of non-public Madrigal Pharmaceuticals.
Shortly before the deal, the value of Synta Pharmaceuticals shares dropped significantly. In June 2015 share price 89 US dollars. CEO Anne Whitaker leaves the company in August. By April 2018 of the year stock costs ok. 8 US dollars.
A year and two months after the completion of the deal, Madrigal Pharmaceuticals announced the successful completion of the second phase of trials of one of the drugs.. The stock has more than doubled since 19,8 to 46,19 Dollars. In June 2018 of the year Madrigal announced the completion of the second stage of yet another research - action in June 2018 have grown to 313,24 Dollars.
Other examples of reverse takeovers for biotech companies.
- Synlogic и Mirna Therapeutics
Announcement of the transaction — 16 May 2017 of the year, to close the deal - 28 august 2017 of the year.
- SELLAS Life Sciences Group и Galena Biopharma
Announcement of the transaction – 8 august 2017 of the year, to close the deal - 29 December 2017 of the year.
- Qualigen и Ritter Pharmaceuticals
Announcement of the transaction – 21 January 2020 of the year, to close the deal - 26 May 2020 of the year.
- Chondrial Therapeutics и Zafgen
Announcement of the transaction — 18 December 2019 of the year, to close the deal - 29 May 2020 of the year.
ResTORbio Shareholders
Among the largest institutional shareholders RESTORBIO companies appear OrbiMed Advisors (13% Shares), PureTech Health (5.8%) And Novartis AG (5.5%).
OrbiMed Advisors LLC is a healthcare investment fund with assets under management around 13 billion USD. In the fund's portfolio c 1989 of the year 362 investment deals, including, 146 as a lead investor, 131 exit. The company remains an active investor, taking part in 11 investment rounds worth from 30 to 100 mUSD with 1 March to 31 May 2020 of the year
OrbiMed Advisors LLC is a biotechnology company, significant shareholder (from 18.1% to 78.6%) in subsidiaries, leading drug development: Alivio Therapeutics, Inc., Follica, Incorporated, Entrega, Inc., Vedanta Biosciences, Inc., Sonde Health, Inc., Mind Interactive Labs, Inc., Karuna Therapeutics, Inc., Vor Biopharma, Inc., Gelesis, Inc. Subsidiaries in 2019 year attracted 666.8 mUSD investment. The company cooperates with the world's leading pharmaceutical companies, such as Amgen, Lilly, Merck, Boehringer Ingelheim, Bristol-Myers Squibb, Johnson & Johnson, Roche and Teva. In the company's portfolio 23 medicinal product, out of which 14 are in clinical trials, and one, a drug (PlenityTM by Gelesis) in April 2019 of the year was approved for use by the United States Food and Drug Administration (FDA). From April 2019 2007 saw a significant rise in PureTech Health PLC shares (LSE:PRTC) c 150$ to 326$ (15 February 2020 of the year), before that during 4 years, the shares were traded in the area 150$ now shares are traded in the area 250$. Another drug from Akili Interactive Labs, a subsidiary of PureTech Health PLC, awaits FDA approval. In December 2019 PureTech Health PLC sold a substantial part of its shares to resTORbio, reducing the share of ownership from 10% to 5,8%.
Novartis AG is the third largest in terms of capitalization (196.8 billion USD) pharmaceutical company in the world (after Johnson & Johnson и Pfizer).
CONCLUSION
- ResTORbio stops being an anti-aging company, her own drugs are moving into the "anti-infectious" sector - the most relevant sector now, retaining potential in the future in anti-aging therapy. ResTORbio Principal Investigator Joan Mannick becomes Chief Infectious Disease Officer for the merged company.
- A company with a hot topic of oncological cell CARt therapy enters the market. In fact, instead of an anti-aging company, an investor today is investing together with the largest funds and investors in CARt - an oncology company with a potential bonus in the form of a potentially curative or preventive remedy for coronavirus. And an unpleasant bonus - in the form 4 ResTORbio shares per share of the new Adicet. But it is precisely for this - in order to improve the conditions for the conversion - that the struggle of the minority shareholders of ResTORbio and the law firms representing them is going on today..
- The management has a successful experience of such transactions. Chen Shor - co-founder of ResTORbio - has made history with the same absorption in biotech at least once and very successfully for himself and for the shareholders of the "problem" company.
- The merger is backed by Novartis and the largest funds, specializing in startups in the pharmaceutical industry. The success story looks compelling enough. And ADICET gets a chance to enter stock exchanges much faster and cheaper., than with a "regular IPO".
