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- Sienna Cancer Diagnostics (SDX) and Bard1 Life Sciences (BD1) have entered a merger agreement to form a new cancer diagnostic business
- According to both companies, the merger will create “a well-resourced, Australian-based company with a global presence”
- When the companies join forces, they’ll be able to develop a product pipeline focussed on the early detection of pancreatic, ovarian, breast and bladder cancers
- Under the arrangement, Sienna shareholders will receive 13 Bard1 shares for every 5 Sienna shares they own
- The share swap implies a value of 6 cents per sienna share; a premium of 119 per cent to Sienna’s one-month average of 2.7 cents per share
- Sienna Cancer Diagnostics shares remain flat at 2.7 cents per share today, but BD1 stock has risen 16 per cent to reach 2.9 cents each
Sienna Cancer Diagnostics (SDX) and Bard1 Life Sciences (BD1) have entered a merger agreement to form a new cancer diagnostic business.
Sienna believes the combined entity will continue to build a deep development pipeline of cancer diagnostic technology.
Both companies have significant development projects already in the works, covering areas of “great unmet medical need.” These include diagnostic tests for pancreatic cancer, ovarian cancer, breast cancer and bladder cancer.
Sienna has also pioneered a unique molecular net technology. It is expected that this merger will allow the technology to be transferred into some of BARD1’s diagnostic tests, boosting their efficacy.
Further to this, Bard1 will now be able to leverage the global distribution network Sienna established for the distribution of its Htert diagnostic test, which is an antibody that detects part of a protein linked to 85 per cent of cancers.
Under the arrangement, Sienna shareholders will receive 13 Bard1 shares for every 5 Sienna shares held.
The shares will move for 6 cents per sienna share — a premium of 119 per cent, considering Sienna’s one-month average of 2.7 cents per share.
Sienna’s CEO and Managing Director Carl Stubbings said the company was “delighted” with the merger.
“The two companies have novel technology platforms that aid in the early and accurate diagnosis of a range of cancers in areas of high unmet medical need,” Carl explained.
“Combining these platforms could be a real game-changer in cancer diagnostics,” he continued.
“We look forward to working with the BARD1 team to build a strong Australian-based globally-focused cancer diagnostic company,” Carl concluded.
In order for the merger to be approved, the deal needs to be ticked off by Sienna shareholders.
For their part, Sienna’s board has recommended unanimously that shareholders vote in favour, in the absence of any superior offer.
The deal is also subject to a number of regulatory approvals before it can proceed.
Sienna Cancer Diagnostic’s shares remain flat at 2.7 cents per share today, but BD1 stock has risen 16 per cent to reach 2.9 cents each at 10:23 am AEST.
