BerGenBio and Oncoinvent Plan to Merge and Boost Cancer Therapy Innovations

Major Merger in Cancer Therapies: BerGenBio and Oncoinvent



In a significant move in the biotech industry, BerGenBio ASA (OSE: BGBIO) has announced its intention to merge with Oncoinvent ASA (OSE: ONCIN). This merger aims to enhance the effectiveness of cancer treatments through innovative radiopharmaceutical strategies. The decision follows careful consideration and strategic evaluations by both companies, intending to leverage their combined resources for broader clinical efficacy.

Details of the Merger and Rights Issue


According to the merger agreement, BerGenBio will be the acquiring entity, effectively consolidating the strengths of both firms. The merger's exchange ratio is defined, assigning 25% of the combined company to BerGenBio shareholders and a substantial 75% to Oncoinvent shareholders. This represents an attractive proposition, valued at NOK 65 million, which is seen as a significant premium compared to previous liquidation scenarios. Furthermore, Oncoinvent is valued at NOK 195.5 million, recognizing its market position as it prepares for future growth after listing on Euronext Growth late last year.

The merger is set to inject approximately NOK 45 million in cash into Oncoinvent's clinical development plan, thus accelerating the advancement of its flagship treatment, Radspherin®. This radiopharmaceutical therapy addresses challenges associated with abdominal cancer, particularly peritoneal carcinomatosis, presenting exciting prospects for patient care in the future.

Upon completion of the merger, the new company will execute a fully underwritten rights issue amounting to NOK 130 million. Proceeds from this issue aim to sustain operations and fund clinical trials, projecting a cash runway into 2027. This is particularly crucial as they await interim results from ongoing Phase 2 trials in ovarian cancer, expected in late 2026.

Support from Key Stakeholders


The merger has garnered the vote of confidence from major shareholders in both companies. BerGenBio’s largest stakeholder, Meteva AS, alongside Oncoinvent's prominent shareholders, Hadean Capital I AS and HVentures Capital I AB, have formally committed to supporting the merger and participating in the rights issue. Their backing underscores the strategic alignment and potential growth opportunities anticipated from this merger.

Standing at the helm, both companies' leadership conveyed optimism about the merger’s potential. Anders Tullgren, Chair of BerGenBio, expressed excitement at the prospect of collaborating with Oncoinvent, lauding the agreement as the most favorable path forward for their shareholders. Likewise, Øystein Soug, the CEO of Oncoinvent, anticipates a transformative future for the merged entity, asserting their commitment to developing innovative cancer therapies.

About the Companies


Oncoinvent is recognized for its pioneering work in the development of cutting-edge radiopharmaceutical therapies. Its leading candidate, Radspherin®, utilizes radium-224, specifically targeting micro-metastases after surgical procedures. The clinical trajectory consists of ongoing studies across the US, UK, and Europe, with the Phase 2 trial expected to confirm its efficacy soon.

In parallel, BerGenBio has recently concluded a strategic review following the discontinuation of its previous study, BGBC016. This merger represents a new chapter for BerGenBio, allowing it to redirect its capital and efforts towards generating substantial clinical outcomes in concert with Oncoinvent.

Looking Ahead: The Path to Completion


Pending the necessary approvals from extraordinary general meetings from both companies, the merger is scheduled for finalization around mid-September 2025. Both boards have convened to ensure that effective governance is established post-merger, with significant adjustments anticipated in leadership roles within the newly merged entity.

Conclusion


The proposed merger between BerGenBio and Oncoinvent signals an exciting development for the biotechnology landscape, particularly in the realm of cancer therapies. By pooling their respective strengths and resources, both firms are poised to make significant strides in combatting cancer through effective and innovative treatment modalities. Stakeholders are encouraged to keep abreast of developments surrounding the rights issue and the operational trajectory of the newly formed company.

Topics Health)

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