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Eleven Biotherapeutics: A Buyout Likely Coming


Management is exploring strategic alternatives, including a sale of the company.

Maximizing shareholder value is their goal.

Over 40% of the outstanding common stock is owned by those affiliated with the company, such as those on the Board of Directors.

Eleven Biotherapeutics, Inc. (NASDAQ:EBIO) recently presented preclinical and Phase 3 clinical data at the Annual Meeting of the Association for Research in Vision and Ophthalmology (ARVO). These presentations served as an important opportunity for the company to gather interest among other companies in their research, thereby leading towards the strategic alternatives they have been evaluating, including partnerships or the sale of the Company. With two proprietary platforms, an investigational new drug application submission due anytime this quarter and invaluable research, EBIO is a strong candidate for a buyout.

Management has a record of buyouts

Abbie Celniker, Ph.D., President and Chief Executive Officer of Eleven Biotherapeutics, has a rich history of serving in leadership roles in biopharmaceutical companies. This includes her positions as the President, CEO, and as a member of the board of directors of Taligen Therapeutics, Inc. While in said capacity, Taligen was acquired by Alexion Pharmaceuticals (NASDAQ:ALXN) for an upfront payment of $112 million for all of Taligen's equity interests. "Additional contingent payments of up to an aggregate of $367 million would be due upon reaching various clinical efficacy and product approval milestones in both the U.S. and European Union for up to six product candidates."

Taligen was a lot like Eleven Biotherapeutics - a proprietary platform, extensive research and patents. And without any product that had passed Phase 3 clinical trials, it still sold with a hefty price tag. If Eleven Biotherapeutics were to receive a similar offer, this would equate to about $5.50 per share, without any additional contingent payments, which could occur with further progress on EBI-031, their most advanced preclinical product candidate, which is to treat Diabetic Macular Edema and Uveitis.

Besides Abbie Celniker's connections to large companies, John McCabe, CFO, was Vice President of Finance at Clinical Data, Inc., a drug developer that was acquired by Forest...