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RTW Venture Fund Ltd - investment company focused on the life sciences sector - Notes that its largest holding, California-based biotech company Prometheus Biosciences Inc, is acquired by pharmaceutical firm Merck & Co Inc. Merck buys Prometheus for nearly $10.8 billion, $200 per share in cash. Prometheus’s share price was at $114.01 when the New York Stock Exchange closed on Friday, so the price represents a 75% premium. RTW says Prometheus is the largest holding in RTW Venture Fund’s portfolio, accounting for around 15% of its net asset value at the end of March. ‘As such, the company expects that this will translate into a material accretion to the NAV,’ it says. Prometheus is developing a treatment for autoimmune diseases, including ulcerative colitis and Crohn’s disease, dubbed PRA023. RTW expects the acquisition to close in the third quarter of 2023. Chief Investment Officer at the Investment Manager, Roderick Wong says: ‘We are delighted to see Merck, who has one of the longest histories of successful innovation in medicine, recognize the value of Prometheus’ leadership position in TL1a directed therapy, and its broader pipeline for immune-mediated diseases.’ Current stock price: $1.20, up 13% on Monday around midday in London 12-month change: down 13% Copyright 2023 Alliance News Ltd. All Rights Reserved.
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