RTW Venture Fund Limited - Acquisition of largest holding at healthy premium
On Sunday 16 April 2023, US major pharma company Merck (NYSE: MRK) announced that, through a subsidiary, it had entered into a definitive agreement to acquire Prometheus Biosciences (NASDAQ: RXDX) for $200 per share for a total cost of c $10.8bn. At 31 March 2023, Prometheus was RTW Venture Fund’s (RTWVF’s) largest holding at c 14.8% of NAV. The bid price represents a 75.4% premium to Prometheus’s closing price on Friday 14 April, therefore the deal, all else being equal, should represent a material uplift in RTWVF’s NAV. Subject to Prometheus’s shareholder approval, the deal should close in Q323. Prometheus is an example of RTW’s long-term, full life cycle investment approach, which supports companies ranging from newco formation to mid-stage venture to pre initial public offering (IPO) and public markets.
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