BridgeBio Oncology Pursues Creative Path with SPAC Merger
Deal News | Feb 28, 2025 | EIN
BridgeBio Oncology Therapeutics, a cancer drug startup, is set to become a public company by merging with Helix Acquisition Corp, a SPAC created by Cormorant Asset Management. The agreement, announced recently, positions BridgeBio Oncology with an anticipated $450 million in capital by merging with Helix, comprised of $196 million on Helix's balance sheet and additional commitments over $260 million from several investors, purchasing shares at $10.36 each. As a result, the company's equity value is assessed at $949 million, with cash reserves totaling approximately $550 million upon completion. This SPAC strategy provides BridgeBio Oncology an alternative mechanism to enter public markets amid sluggish biotech IPO conditions, enabling investors to retain more significant stakes. The transition occurs as a response to investor pressures to concentrate on more advanced drug programs. BridgeBio Oncology is actively progressing three drugs through early testing phases, all focused on inhibiting KRAS mutations or protein signaling related to tumor growth. SPAC transactions gained traction in 2020 but later faced challenges, though recent signs of resurgence suggest renewed investor interest. The deal awaits closure in the third quarter and would initiate BridgeBio Oncology's trading under the symbol BBOT on the Nasdaq.
Sectors
- Biotechnology and Pharmaceuticals
- Finance and Investment
Geography
- United States – Both BridgeBio Oncology and Helix Acquisition Corp are based in the U.S., making it the primary geography for this transaction and market entry.
Industry
- Biotechnology and Pharmaceuticals – This industry involves companies focused on drug development, including those like BridgeBio Oncology that are engaged in developing cancer therapies.
- Finance and Investment – Helix Acquisition Corp operates within the financial sector as a SPAC, providing alternative financing routes for private companies seeking public listings.
Financials
- $450 million – Total expected proceeds from the SPAC merger for BridgeBio Oncology.
- $196 million – Amount held by Helix Acquisition Corp for the merger.
- $260 million – Additional commitments from over a dozen investors purchasing shares at $10.36 each.
- $949 million – Equity value of BridgeBio Oncology as assessed by the SPAC deal.
- $550 million – Expected total cash reserves post-transaction closure.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| BridgeBio Oncology Therapeutics | Target | Company | A cancer drug startup that is being spun out to become a publicly traded entity. |
| BridgeBio Pharma | Parent Company | Company | Parent biotechnology company from which BridgeBio Oncology was spun out. |
| Helix Acquisition Corp | Bidding Company | Company | A SPAC formed by Cormorant Asset Management to facilitate the public listing of BridgeBio Oncology. |
| Cormorant Asset Management | Investor | Company | A biotech investment firm behind the creation of Helix Acquisition Corp. |
| Neil Kumar | CEO of BridgeBio Pharma | Person | CEO of BridgeBio Pharma, overseeing strategic growth and spinouts like BridgeBio Oncology. |
| Eli Wallace | CEO of BridgeBio Oncology | Person | CEO of BridgeBio Oncology, guiding its transition to a public company through a SPAC merger. |