Zymeworks Turns Down All Blue's Hostile Bid

Zymeworks Inc's ZYME board has officially turned down an unsolicited, opportunistic, non-binding proposal from an activist shareholder, All Blue Falcons.
The company rejected the buyout at $10.50 per share.
All Blue's bid "significantly undervalues its prospects related to the company's long-term business strategy and potential commercial opportunities. In addition, the non-binding proposal lacks credibility by offering no information regarding potential funding sources or details on their ability to consummate such a transaction," per Zymeworks.
Also Read: HC Wainwright Sees 'Multiple Catalyst Opportunities' After Atreca Inks Licensing Pact With Zymeworks.
"This non-binding, unsolicited activist proposal was timed opportunistically during a period of substantial market dislocation and prior to several important near-term events for the company expected in 2022. We are confident that the execution of our key strategic priorities has the potential to deliver greater value to our shareholders than the current inadequate and non-binding proposal," said Kenneth Galbraith in a statement.
The company says it is focused on the development of its two clinical-stage assets, zanidatamab and ZW49, with multiple expected data catalysts over the course of 2022 and 2023.
Price Action: ZYME shares are up 1.89% at $5.93 during the market session on the last check Friday.