Third Harmonic Bio Stock Is Up 40% Monday: What's Happening?

Third Harmonic Bio Inc THRD shares are soaring on Monday after the company announced a plan of liquidation and dissolution.

What Happened: Third Harmonic announced that its board approved and adopted a plan for the liquidation and dissolution of the company and the distribution of remaining cash to shareholders, including any proceeds from asset and intellectual property sales.

The clinical-stage biopharmaceutical company noted that it plans to complete all Phase 2 readiness for its THB335 program by mid-year to maximize the value of the program before a potential sale.

Third Harmonic plans to seek shareholder approval of the dissolution plan at its annual meeting on June 5. Pending shareholder authorization, the company plans to file a Certificate of Dissolution with the Secretary of the State of Delaware in the third quarter.

“Our management team and board of directors together have completed an efficient review of our strategic alternatives for maximizing the value of our assets and have determined that returning cash to shareholders and selling our assets, including THB335, is the best path forward,” said Natalie Holles, CEO of Third Harmonic Bio.

“We are proud of the work that our team has done over the past years to advance our science, to make tough decisions, and to act with integrity in the best interest of our patients and shareholders.”

Third Harmonic estimated that the total shareholder distribution will be in the range of $246.6 million to $259.8 million, or approximately $5.13 to $5.42 per share. The estimates do not include potential proceeds from any sales of the company’s remaining assets and intellectual property.

Third Harmonic Bio shares were up 39%, trading around $5.06 at the time of publication Monday, according to Benzinga Pro.

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This illustration was generated using artificial intelligence via Midjourney.