HC2 Holdings, Inc. (NYSE: HCHC) looked for great things on the market Wednesday, after the company disclosed that BeneVir Biopharm agreed to be purchased by J&J's Janssen Biotech for up to $1.04 billion.
BeneVir is a portfolio company within HC2’s Pansend Life Sciences subsidiary. HC2 made its initial investment in BeneVir in 2014, and currently owns approximately 76% of the company’s equity.
Under the terms of the agreement, Janssen will make an upfront cash payment of $140 million at closing of the transaction, plus additional contingent payments of up to $900 million based on achievement of certain predetermined milestones.
The total amount of all payments could exceed $1 billion if all milestones are met. The closing of the transaction is subject to customary closing conditions. The transaction is expected to close in the second quarter of 2018.
BeneVir CEO Matt Mulvey said, "Our goal at BeneVir has been to develop T-StealthTM, an oncolytic immunotherapy platform, to help patients whose tumors do not respond to current therapeutic options including immune checkpoint inhibitors.
"We are excited to join the Janssen team and continue to innovate in the field of oncolytic viral immunotherapy."
HC2 Holdings "seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders."
HC2 boasts a diverse array of operating subsidiaries across construction, marine services, energy, telecommunications, Life Sciences, broadcasting, and insurance, among others.
Shares galloped $2.12, or 41%, to $7.29
