Surface Oncology stock rallies on all-stock acquisition by Coherus

Surface Oncology Inc.
SURF,
+1.37%
stock is up 49% in premarket trades on Friday after the cancer drug company agreed to be acquired by Coherus BioSciences Inc.
CHRS,
+0.56%
in a stock-for-stock deal valued at up to $65 million. Coherus will issue shares of its common stock at a price of $5.2831 per share to acquire all outstanding shares of Surface stock for a total value equal to the sum of $40 million. The total deal value of $65 million also includes Surface’s net cash at closing of the transaction of about $20 million to $25 million. Surface shareholders will also receive contingent value rights (CVRs) for 70% of milestone and royalty-based value of existing programs with Novartis AG
NVS,
+1.72%
and GSK plc
GSK,
+2.32%,
as well as CVRs for 25% of upfront payments made pursuant to potential ex-US licensing agreements for cancer fighting drug SRF114 and 50% of upfront payments made pursuant to potential ex-US licensing agreements for SRF388. Coherus stock is down 5% in premarket trades.