The non-binding proposal offers a share price more than twice the $4.88 value at market close on Wednesday. The stock gained more than 30% in after-hours trading on Thursday, after Reuters first reported the bid.
“We believe that the Company has suffered from severe value erosion due to a number of serious missteps by an unfocused leadership with no clear strategy for improving performance,” All Blue’s letter to the board said.
Zymeworks has been through a series of recent shakeups, and replaced its CEO in January with industry veteran Kenneth Galbraith. Galbraith announced plans to lay off a quarter of the company’s workforce amidst a “streamlined” R&D strategy focused on its clinical oncology programs. The company also raised $100 million in January in a public offering, pricing its shares around $8, far below a high of more than $50 early last year.
Dubai-based All Blue Capital currently owns close to 5.5% of Zymeworks’ shares. The firm’s investments include Pinterest, SpaceX, Peloton, Lyft and other tech-focused companies.
Zymeworks is developing “bispecific antibodies” that recognize two different molecular targets simultaneously, as well as other types of treatments. Its lead candidate is in late-stage clinical trials.
GeekWire has reached out to Zymeworks for comment and will update this story when we hear back.