Holocene Advisors says Merck's offer undervalues Acceleron

Ref: Financial Post
  • Holocene Advisors said it will not tender its shares in Acceleron Pharma into Merck & Co’s proposed $180 per share offer for the drugmaker, as it significantly undervalues the company, as reported by the Financial Post.

  • As of June 30, Holocene owned 1.42% of Acceleron’s traded shares, and is among the company’s top 20 investors, according to Refinitiv.

  • "A transaction now, at this price, is not compelling … (the offer) does not compensate XLRN shareholders adequately, given Acceleron’s strong pipeline and attractive long-term business prospects," the investment management firm said Wednesday.

  • Avoro Capital, which owns 7% of Acceleron stock, also said the deal undervalues the drugmaker.

  • In September, Merck said it would buy Acceleron for about $11.5 billion, eyeing access to its drug sotatercept, which the company expects could bring in billions of dollars in sales.