#Norway #Oslo #radiopharmaceuticals #BerGenBio #Oncoinvent

BerGenBio and Oncoinvent to Merge and Strengthen Cancer Treatment Efforts

In a groundbreaking move within the biotechnology sector, BerGenBio ASA (OSE: BGBIO) and Oncoinvent ASA (OSE: ONCIN) have announced their intent to merge. This strategic collaboration aims to harness their combined resources and expertise to enhance the development of cutting-edge treatments for cancer, particularly targeting the challenging arena of peritoneal carcinomatosis.

The Merger Agreement

The agreement, described as a statutory merger, will see BerGenBio effectively acquire Oncoinvent, allowing a significant restructuring of their capital and assets. Following the merger, a fully underwritten rights issue will be executed, which is anticipated to bolster Oncoinvent’s financial foundation and fortify its clinical strategies moving forward.

The exchange ratio for the merger is set at 25% for BerGenBio and 75% for Oncoinvent, valuing BerGenBio at NOK 65 million and Oncoinvent at NOK 195.5 million. Notably, this merger is characterized by a premium over both companies' closing stock prices as of June 30, 2025.

Financial Implications and Shareholder Benefits

With the merger, BerGenBio's integration of Oncoinvent is expected to yield approximately NOK 45 million in cash to support Oncoinvent’s clinical development initiatives. Furthermore, this merger will create a larger shareholder base, which is projected to improve liquidity and facilitate a potential uplisting to a larger exchange, pending regulatory approval from the Oslo Stock Exchange.

The rights issue planned post-merger is crucial as it aims to raise NOK 130 million. This infusion of capital is essential for maintaining operational robustness into 2027, particularly as Oncoinvent anticipates interim clinical trial results for its Phase 2 trials in ovarian cancer around the second half of 2026.

Support from Major Shareholders

Support for the merger comes from significant stakeholders including the largest shareholders of both companies, with notable backing from Meteva AS for BerGenBio and Hadean Capital I AS along with HVentures Capital I AB and Linc AB for Oncoinvent. These shareholders have committed to voting in favor of the merger and have agreed to lock-up commitments for a period of six months after the announcement.

Expert Insights

Anders Tullgren, chair of BerGenBio's board, expressed his enthusiasm about the impending merger, highlighting that it follows a comprehensive review of the company’s strategic options to maximize shareholder value. He underscored the potential for BerGenBio shareholders to gain exposure to an innovative firm utilizing advanced Norwegian radiopharmaceutical technology, which has already shown promising preliminary efficacy data without major safety issues.

Meanwhile, Øystein Soug, CEO of Oncoinvent, is set to lead the newly merged entity. He conveyed excitement about the merger, emphasizing its potential to significantly impact the radiopharmaceutical sector. Oncoinvent’s lead product, Radspherin®, exemplifies the innovative treatments they are committed to advancing, specifically targeting micro-metastases in the abdominal cavity.

About Oncoinvent

Oncoinvent is recognized as a clinical-stage biopharmaceutical firm dedicated to pioneering therapies designed to combat cancer using novel radiopharmaceutical solutions. Its flagship candidate, Radspherin®, utilizes alpha-emitting radium-224 to target cancer cells effectively, signifying a meaningful progression in treatment methodologies. The company is at the forefront of clinical trials, assessing Radspherin®'s safety and efficacy across multiple cancer indicators, including ovarian and colorectal cancers.

Future Outlook

The merger is contingent upon approvals from both companies' extraordinary general meetings set for August 4, 2025. With optimism surrounding the strategic alliance and its expected clinical advancements, BerGenBio and Oncoinvent stand poised to make significant strides in cancer therapy, potentially transforming outcomes for patients facing these formidable health challenges. As the landscape of cancer treatment evolves, this merger may not only reshape the fortunes of the involved companies but also contribute to historical advancements in medical science.

In conclusion, the proposed merger between BerGenBio and Oncoinvent marks a strategic milestone for both parties as they aim to redefine cancer treatment possibilities through collaborative innovation.