YM Bio says BBM's offer not enough

New York, USA-based BBM Holdings has made an offer to acquire Canadian biotechnology firm YM Biosciences for $0.50 per share in cash plus stock, which values the latter at about $29.0 million, an 84.5% premium to its closing price ahead of the communication. In an environment that is proving difficult for financing for smaller enterprises (Marketletters passim), BBM, previously a telecommunications engineering and service company, says it is pursuing a new acquisition strategy to create a large roll-up of small biotechnology groups.

Responding to the unsolicited proposal, YM chief executive David Allan, rejected the offer, saying: "we do not believe that an offer at this price would appropriately value the company's assets," but will consider all offers in shareholders' interests. It also points out that, as well as net cash of over $43.7 million at September 30, YM owns the rights to AeroLEF, a unique delivery system for fentanyl in the treatment of acute pain which is being prepared for late-stage trials, and other assets.