Concentra Biosciences Acquires IGM in Latest Biotech M&A Move

Concentra Biosciences has announced the acquisition of antibody biotech IGM Biosciences for $1.25 per share, continuing its streak of purchasing struggling biotech companies. The deal, expected to close in August 2025, comes as IGM faces significant financial challenges and pipeline setbacks.

Deal Structure and Financial Details

The acquisition, approved by IGM's board, includes a contingent value right (CVR) that will provide IGM with any net cash from the deal exceeding $82 million, plus 80% of proceeds from the biotech's pipeline candidates and intellectual property within a year of closing. The deal's closure is contingent on IGM having at least $82 million available in cash, among other customary conditions.

IGM's Recent Struggles

California-based IGM, which has been developing engineered IgM therapeutic candidates for nearly three decades, has faced a series of setbacks in recent years:

• In early May 2025, Sanofi terminated a collaboration with IGM, effectively ending the biotech's last remaining program.
• Following the Sanofi decision, IGM laid off 80% of its staff and closed most of its lab and office spaces.
• Prior to this, IGM had already undergone multiple restructurings, including workforce reductions of 22% in late 2023 and 73% in early 2025.
• The company axed its last two internal drug candidates at the beginning of 2025.
• In June 2025, IGM received notice from Nasdaq indicating its failure to meet the $50 million minimum market value requirement for publicly held shares.

Concentra's M&A Strategy

Concentra Biosciences, backed by Tang Capital Partners, has been actively acquiring struggling biotech companies:

• In June 2025, Concentra announced plans to acquire Elevation Oncology.
• Earlier acquisitions in 2025 included Kronos Bio and Allakos.

However, Concentra's M&A efforts have faced some resistance. In March, two biotechs enacted "poison pill" defenses to ward off Concentra's advances. One of these companies, Acelyrin, opted to merge with another biotech rather than sell to Concentra.

The IGM acquisition represents Concentra's continued strategy of identifying and acquiring undervalued biotech assets, potentially aiming to revitalize struggling companies or capitalize on their intellectual property and pipeline candidates.