Poseida Therapeutics Stock Hits Over 3-Year Highs On Roche’s $1.5B Buyout Deal: Retail Is Euphoric

The deal underscores Roche's interest in Poseida’s proprietary non-viral platform, which enables the development of allogeneic CAR-T therapies enriched with T stem cell memory cells.

Shares of Poseida Therapeutics Inc. ($PSTX) surged over 200% on Tuesday, reaching levels not seen since August 2021, after the company announced its acquisition by Roche Holdings ($RHHBY) in a deal valued at up to $1.5 billion.

The stock was the top gainer across U.S. markets early on Tuesday and was among the top 10 trending symbols on Stocktwits.

Under the agreement, Poseida stockholders will receive $9.00 per share in cash at closing, along with a non-tradable contingent value right (CVR) of up to $4.00 per share, contingent upon achieving specific milestones. 

The deal underscores Roche’s interest in Poseida’s proprietary non-viral platform, which enables the development of allogeneic CAR-T therapies enriched with T stem cell memory (TSCM) cells.

“Poseida has demonstrated the unique ability of its proprietary non-viral technology platform to create allogeneic, TSCM-rich CAR-T therapies with the potential to improve clinical outcomes and expand access to this important class of medicines,” said Poseida CEO Kristin Yarema.

“Most recently, this was highlighted by the compelling interim clinical data for P-BCMA-ALLO1 in patients with multiple myeloma.”

Roche’s acquisition also includes Poseida’s cell therapy candidates, manufacturing capabilities, and technology platform.

Wall Street analysts reportedly responded with several downgrades for Poseida, citing the definitive valuation set by the acquisition terms.

H.C. Wainwright, William Blair, BTIG, and Cantor Fitzgerald all downgraded the stock to ‘Neutral’ or equivalent ratings, noting the fair terms of the $13 per share offer, which includes both upfront cash and milestone-dependent payouts.

The acquisition builds on a collaboration between the two companies that began in 2022, focused on CAR-T cell therapies for hematologic malignancies. 

The merger is expected to close in the first quarter of 2025, with Poseida and its employees set to join Roche’s Pharmaceuticals Division.

Retail sentiment on Stocktwits has also turned ‘extremely bullish’, with users highlighting the premium payout as a significant win for shareholders.

Poseida shares, which had lost over 15% year-to-date before the announcement, are now poised for a dramatic turnaround, driven by investor optimism about the acquisition. 

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