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Holocene Advisors says Merck’s offer undervalues Acceleron


Oct 13 (Reuters) – Investment administration agency Holocene Advisors mentioned it is not going to tender its shares in Acceleron Pharma Inc (XLRN.O) into Merck & Co’s (MRK.N) proposed $180 per share offer for the drugmaker, because it considerably undervalues the corporate.

Holocene owned 1.42% of Acceleron’s traded shares as of June 30, and is among the many prime 20 traders within the firm, in keeping with knowledge from Refinitiv.

“A transaction now, at this price, is not compelling … (the offer) does not compensate XLRN shareholders adequately, given Acceleron’s strong pipeline and attractive long-term business prospects,” Holocene mentioned in an announcement on Wednesday.

Avoro Capital, which owns 7% of Acceleron inventory together with its managed funds, had additionally mentioned the deal undervalues the drugmaker.

Merck in September mentioned it might purchase Acceleron for about $11.5 billion, eyeing entry to its uncommon illness drug candidate, sotatercept, which the corporate expects may usher in billions of {dollars} in gross sales. learn extra

Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath

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