TLDR
- Quince Therapeutics (QNCX) stock exploded over 300% Tuesday after announcing it hired LifeSci Capital as exclusive financial advisor to explore strategic alternatives
- The company is considering partnerships, joint ventures, mergers, acquisitions, licensing deals, or other transactions to maximize shareholder value
- Trading volume exceeded 1.1 billion shares as investors bet on a potential sale of the company or its assets at a premium
- Quince warned there’s no guarantee the strategic review will result in any deal and won’t provide updates unless the board approves a transaction
- The biotech company develops bone-targeted drug platforms to deliver therapies directly to fracture and disease sites for rare disease treatments
Quince Therapeutics stock rocketed higher Tuesday after the biotech company announced it engaged LifeSci Capital as its exclusive financial advisor. The stock surged over 300% during trading as volume topped 1.1 billion shares.
Quince Therapeutics, Inc., QNCX
The late-stage biotechnology company said it’s exploring strategic alternatives to maximize shareholder value. Options on the table include partnerships, joint ventures, mergers, acquisitions, and licensing deals.
LifeSci Capital will also advise on potential restructuring of Quince’s liabilities. The announcement sparked immediate investor interest in the micro-cap stock.
Why Investors Are Betting Big
Traders appear to be wagering that the strategic review could lead to a sale of the company or its assets at a premium. This speculation drove the sharp re-rating of the stock.
Quince specializes in treatments for rare diseases using its bone-targeted drug platform. The technology delivers small molecules, peptides, or large molecules directly to bone fracture and disease sites.
The company’s approach promotes rapid healing with fewer off-target safety concerns compared to non-targeted therapeutics. This specialized platform could make Quince an attractive acquisition target.
The company cautioned investors that there’s no assurance the process will result in any specific deal. Quince said it doesn’t plan to provide further updates unless the board approves a transaction or deems additional disclosure necessary.
What’s Next for QNCX
Quince is scheduled to report its next financial update on March 23. Analysts expect a loss of 21 cents per share, an improvement from the 28-cent loss reported a year ago.
The stock currently carries a Buy rating from analysts. However, recent actions have been mixed.
Citizens downgraded the stock to Market Perform on January 30. D. Boral Capital also downgraded to Hold on the same day.
One day earlier, D. Boral Capital maintained a Buy rating with a $5.00 price target. That target represents substantial upside from current levels.
Quince traded at $0.57 Tuesday afternoon, up 338% from its previous close. The stock had also jumped 27.2% in after-hours trading Monday following the initial announcement.
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