Equillium cancels Metacrine buy, citing ‘strong financial position’ after Ono deal

Last month, Equillium Inc. announced that it was cancelling its purchase of Metacrine Inc. due to their “strong financial position” after closing an agreement with Ono Pharmaceuticals Ltd. in Japan. In this article, we'll be exploring the implications of this decision and what it means for Equillium's future investments.

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Provides an overview of the buyout.

Equillium has announced that it is cancelling its planned buyout of Metacrine, citing the company's strong financial position following its recent deal with Ono Pharmaceuticals.

The buyout would have seen Equillium acquire all of the outstanding shares of Metacrine for $6 per share in cash, for a total price of approximately $205 million. However, the company has now decided to cancel the deal, citing its strong financial position following the completion of its $300 million deal with Ono Pharmaceuticals.

Equillium CEO Jeremy Morrison said: "After careful consideration, we have determined that cancellation of the Metacrine acquisition is in the best interest of our shareholders. We are pleased with the progress we have made in executing our business plan and are confident in our ability to continue to generate significant value for our shareholders."

Talks about the financial mismanagement that has rocked Equillium since its CEO, Jeff Boscoiro, stepped down as CEO.

In the wake of Ono Pharmaceuticals' $590 million deal to buy out its shareholders, Equillium has been in the hot seat over its financial management.

The biotech company announced last week that it would no longer be pursuing a deal to acquire Metacrine, citing its "strong financial position" after the Ono deal.

However, critics have called into question Equillium's financial management in the past, particularly under former CEO Jeff Boscoiro.

In 2017, it was revealed that Boscoiro had used company funds to pay for personal expenses, including travel and entertainment. He was subsequently ousted as CEO.

Since then, Equillium has been working to improve its financial management and regain investor confidence. The company has brought on a new CFO and instituted stricter spending policies.

The Ono deal is seen as a major step in this process, and Equillium will now look to move forward with its business and put the controversy surrounding its finances behind it.

Equillium sees $26M Metacrine buy as opportunity to boost its balance sheet

Equillium has announced that it is cancelling its $26 million purchase of Metacrine, citing its "strong financial position" after its recent deal with Ono.

The company had announced its intention to buy Metacrine last month, but has now decided to walk away from the deal.

This is a positive move for Equillium, as it allows the company to focus on its core business and continue to strengthen its financial position.

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The deal with Ono was a key factor in this decision, as it provides Equillium with a significant amount of cash that can be used to invest in other areas of the business.

This is a sensible decision by Equillium and one that will benefit the company in the long term.

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