A little over a month after inking a deal to be acquired by private equity firms, bluebird bio confirmed receipt of an unsolicited non-binding written proposal from Ayrmid to acquire the company.
UK-based Ayrmid offered an upfront cash payment of $4.50 per share and a one-time contingent value right of $6.84 per share payable upon achievement of a net sales milestone.
As previously revealed in February, bluebird entered into a definitive agreement with funds managed by Carlyle and SK Capital Partners to be acquired and taken private for $3.00 per share in cash and a one-time contingent value right of $6.84 per share.
In its most recent press release, bluebird says it previously engaged in discussions with Ayrmid as part of its review of strategic alternatives, but Ayrmid did not submit any proposal as part of that process.
Per the terms of its deal with Carlyle and SK, if bluebird were to terminate the merger, it would be required to pay a termination fee of $1.5 million or an expense reimbursement of $300,000, depending on the circumstances. The bluebird board say it has not changed its recommendation in support of the merger, however, “consistent with its fiduciary duties,” it is carefully reviewing the Ayrmid proposal in consultation with its legal and financial advisors.
The biotech has been cash-strapped for some time, with financial issues stemming from the complex supply chain and lack of commercial success of its three gene therapies — Lyfgenia, Skysona and Zynteglo. In a 2023 SEC filing, bluebird had warned that there was “substantial doubt regarding our ability to continue as a going concern.” The following year, the company laid off 25% of its staff in a restructuring effort.
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