Tango Therapeutics, a US-based cancer therapeutics research provider backed by biopharmaceutical company Gilead Sciences, agreed to a reverse takeover with special purpose acquisition company (SPAC) BCTG Acquisition Corp yesterday.
The deal will involve Tango acquiring the place on Nasdaq Capital Market secured by BCTG Acquisition Corp when it floated in a $125m initial public offering in September 2020. The merger is set to be completed in the third quarter of 2021.
As well as roughly $167m held in BCTG’s trust account, SPAC sponsor Boxer Capital is leading a $186m private investment in public equity (PIPE) financing for the deal that includes Gilead Sciences and fellow existing backers healthcare investment firm Casdin Capital and investment manager Cormorant Asset Management.
Investment and financial services group Fidelity Management & Research Company, Avoro Capital Advisors, Bain Capital Life Sciences, EcoR1 Capital, Farallon Capital and funds and accounts managed by Blackrock are also participating in the PIPE.
Foresite Capital, Janus Henderson Investors, Logos Capital, RA Capital Management, Samsara BioCapital, Southpoint Capital, financial services firm Citadel’s Surveyor Capital unit and Woodline Partners filled out the PIPE investors.
Tango is working on oncology drugs targeting cancer cells caused by genetically defined factors such as a lack of tumour suppressor genes and immune escape. The proceeds from the reverse merger will allow it to further develop its drug discovery capabilities.
The company was launched by venture capital firm Third Rock Ventures in 2017 with $55m in series A funding. It secured $60m in a series B round in April 2020 led by Boxer Capital and backed by Casdin Capital and Cormorant Asset Management.
Tango had most recently received $50m in an August 2020 round led by Casdin Capital that included $20m from Gilead Sciences provided through a strategic partnership, in addition to Cormorant Asset Management and Boxer Capital.
