All Blue Capital Recruits Former AstraZeneca Oncology Head to Sweeten Zymeworks Deal

All Blue Capital announced on May 3 that it had hired seasoned oncology industry veteran Alan Barge, MD, to assist in All Blue’s proposed acquisition of a Canadian-based, clinical-stage oncology development company, Zymeworks. The announcement of Dr. Barge’s involvement comes just days after All Blue offered a non-binding proposal to acquire Zymeworks for approximately $773 million.

The Proposal To Make the Zymeworks Private

In All Blue’s initial proposal dated April 28, the investment firm offered to purchase the remaining 95% of the shares for $10.50. This figure was 116% more than the $4.86 that Zymeworks’ stock closed with last Wednesday. After All Blue announced the proposal, the stock increased to $7.20 on Thursday, still substantially less than All Blue’s offer. 

Zymeworks’ stocks have seen a consistent decline in the last year, and All Blue pulled no punches citing their concerns for the company’s future. One stinging remark from the proposal reads, “We believe that the Company has suffered from severe value erosion due to a number of serious missteps by an unfocused leadership with no clear strategy for improving performance.”

All Blue also noted in the April 28 proposal that the stock price had declined by a whopping 87% since July 2021. 

All Blue is currently invested in several other companies like SpaceX, Airbnb, Lyft, and Uber, but their portfolio does not indicate any biotechnology investments other than Zymeworks. With a lack of experience and the desire to take Zymeworks entirely private, All Blue sought the help of Dr. Alan Barge to lend his expertise in the colossal, multi-million dollar endeavor.

Well Versed and Wise to the Industry: Dr. Alan Barge

Managing Partner at All Blue, Matt Novak, said, “Alan’s exceptional breadth and depth of expertise in oncology, drug development and commercialization has greatly expanded All Blue’s capabilities in the biopharmaceutical industry.”

With a wealth of knowledge and experience, Dr. Barge appears to be the perfect fit for the role that All Blue needs to acquire Zymeworks. 

Dr. Barge’s most recent accomplishment was founding Carrick Therapeutics in 2016 out of Oxford, England. He also co-founded Singapore-based ASLAN Pharmaceuticals in 2010. Before that, he worked as the Head of Oncology and Infection at AstraZeneca starting in 1999.

Having acquired such a valuable asset in Dr. Barge, All Blue has nothing to do but wait for Zymeworks’ response which will surely come soon since the proposal has garnered so much attention. 

Author

Reed Slater