Lisata Therapeutics, Inc. (NASDAQ:LSTA) shares are trading higher on Wednesday. The company agreed to be acquired by Kuva Labs in a deal that values the company's stock at $4.00 per share in cash.
The binding term sheet calls for Kuva to launch a tender offer for all Lisata common shares at the agreed price, marking a major shift for the clinical-stage drug developer focused on solid tumor therapies.
Deal Details
Under the agreement, Lisata shareholders will receive two contingent value rights (CVRs) tied to future milestones.
One CVR pays $1 per share once certain Greater China rights revert to Lisata.
The second CVR pays $1 per share when Kuva files regulatory approval documents for certepetide in any indication. Both Lisata and Kuva boards unanimously approved the term sheet.
The companies plan to finalize a definitive purchase agreement by Feb. 27, 2026, ahead of the scheduled tender offer launch.
The $4.00 cash offer reflects roughly an 85% premium to Lisata's recent closing price. With the CVRs included, the total implied premium approaches 180%, underscoring investor interest in Lisata's pipeline and lead drug candidate, certepetide.
As of September 30, 2025, the company had cash and cash equivalents of approximately $19.0 million.
Based on its existing and planned activities, the company believes available funds will support current operations into the first quarter of 2027, with no debt.
Certepetide Background
Certepetide, formerly known as LSTA1, is an investigational cyclic peptide designed to improve tumor targeting by activating a unique uptake pathway. It may enhance co-administered anti-cancer drugs' penetration into solid tumors and modify tumor microenvironments for greater therapeutic effect.
Clinical Progress And Designations
The drug has shown favorable safety and tolerability in trials testing it with standard chemotherapy for pancreatic cancer.
It also holds Fast Track and multiple Orphan Drug and Rare Pediatric Disease designations from U.S. and European regulators.
LSTA Price Action: Lisata Therapeutics shares were up 85.65% at $4.01 at the time of publication on Wednesday. The stock is trading near its 52-week high of $4.11, according to Benzinga Pro data.
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