Surface Oncology stock rallies on all-stock acquisition by Coherus

Surface Oncology Inc. (SURF) stock is up 49% in premarket trades on Friday after the cancer drug company agreed to be acquired by Coherus BioSciences Inc. (CHRS) in a stock-for-stock deal valued at up to $65 million. Coherus will issue shares of its common stock at a price of $5.2831 per share to acquire all outstanding shares of Surface stock for a total value equal to the sum of $40 million. The total deal value of $65 million also includes Surface's net cash at closing of the transaction of about $20 million to $25 million. Surface shareholders will also receive contingent value rights (CVRs) for 70% of milestone and royalty-based value of existing programs with Novartis AG (NOVN.EB) and GSK plc (GSK.LN), as well as CVRs for 25% of upfront payments made pursuant to potential ex-US licensing agreements for cancer fighting drug SRF114 and 50% of upfront payments made pursuant to potential ex-US licensing agreements for SRF388. Coherus stock is down 5% in premarket trades.

-Steve Gelsi

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06-16-23 0751ET

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