Ablynx rejects Novo's €2.3bn bid

The Ablynx Board stated that the proposal fundamentally undervalues Ablynx, which has set up a long-term strategy of becoming a fully integrated biopharmaceutical company. The Board confirmed that it also rejected a previous bid of €26.75 per share in the first December week. Five out of six analysts recommended to buy the share, which jumped from €21.20 to €35 (leading to a market capitalisation of €2.62bn) on Friday, briefly before the company published its JP Morgan conference presentation.

Ablynx currently has 45 proprietary and 9 partnered programmes in its portfolio. Eight of the company‘s nanobodies are in the clinic, the most advanced, caplacizumab, to be launched this year to treat the orphan disease thrombotic thrombocytopenic purpura (TTP), a potential US$1.2bn market opportunity. At JP Morgan the company announced further 3 programmes might come to the clinic this year. 

In its bid, Novo tied the CVR of US$2.50/per share to Ablynx's IL-6 blocker vobarilizumab (Phase II IL-6 blocker for systemic lupus erythematosus partnered with Abbvie) and its respiratory syncytial virus-targeting Phase II nanobody ALX-0171.  

"Novo Nordisk's proposal is not in the best interests of the company and its shareholders as it fundamentally undervalues caplacizumab, the Ablynx pipeline, platform, technology, people, and know-how," said Edwin Moses, CEO of Ablynx. He added that complex instruments like a CVR "does not constitute a basis for further discussions at this time." Moses made clear that he believes that the execution of Ablynx' strategic plan to become an integrated biopharma company will deliver substantially more value to Ablynx shareholders than Novo Nordisk's proposal.