Poseida Shares Surge Following $1.5 Billion Roche Acquisition Deal

On Tuesday, Poseida Therapeutics, Inc. (NASDAQ:PSTX) announced that it will be acquired by Roche Holdings, Inc. in a deal valued at up to $1.5 billion. Poseida shareholders will receive $9.00 in cash per share at closing, along with an additional contingent value right (CVR) that could provide up to $4.00 per share in cash, contingent upon the achievement of certain milestones.

This acquisition will significantly enhance Roche's capabilities in the field of allogeneic cell therapy, as it will add Poseida's pioneering non-viral, T stem cell memory (TSCM)-rich CAR-T therapies and genetic medicines to its portfolio. These therapies are currently being developed for a range of conditions, including hematological cancers, autoimmune diseases, and solid tumors.

The terms of the transaction foresee Roche launching a tender offer to purchase all of Poseida's outstanding shares for the aforementioned cash payment and CVR. The completion of the deal is subject to standard closing conditions, including the tender of a majority of Poseida's outstanding shares, regulatory review, and other customary conditions. The acquisition is expected to be finalized in the first quarter of 2025.

Poseida's Board of Directors has unanimously approved the merger agreement and recommends that shareholders tender their shares in the offer. Upon successful completion of the tender offer, Roche will acquire any remaining shares that are not tendered through a second-step merger at the same price and terms.

This move will expand Roche's pharmaceutical division with innovative therapies developed by Poseida and a robust genetic engineering platform.