Ikena Oncology Acquires Pionyr Immunotherapeutics: Analysts See The Deal As Positive Move

Ikena Oncology Inc IKNA acquired Pionyr Immunotherapeutics Inc, a privately-held biotechnology company, in an all-stock transaction. 

Ikena acquired all of Pionyr's assets, including approximately $43 million in net cash, in exchange for shares of IKNA stock, in a combination of common stock and non-voting convertible preferred stock priced at $7.15 per share.

The transaction includes contingent value rights providing the legacy Pionyr shareholders with rights to 50% of the net proceeds, outside of royalties, for any potential monetization of the Pionyr programs within the next two years.

The transaction further strengthens Ikena's financial position as the company advances the development of its targeted oncology programs. 

Ikena plans to include Pionyr's programs as part of Ikena's partnering portfolio and to pursue strategic business development opportunities, including out-licensing.

William Blair analyst Matt Phipps sees the move as prudent for management to continually evaluate opportunities to increase cash on the balance sheet, particularly when it can be acquired at a discount. 

The analyst remains bullish on the company's TEAD inhibitor, IK-930, ahead of the planned clinical update later this year and reiterates its Outperform rating. 

HC Wainwright analyst Andres Maldonado writes that Ikena can now leverage Pionyr's "Myeloid Tuning" platform to explore new strategies for oncology.

The analyst sees the deal as positive for Ikena given that the transaction price of $7.15 per share represents a premium to both Ikena's twenty-day volume-weighted average and its most recent underwritten public offering.

Price Action: IKNA shares are up 8.72% at $4.50 on the last check Monday.