Acquisition Announcement: Tempest Therapeutics Inc. is experiencing a significant drop in share price following its announcement of an all-stock acquisition of dual-CAR T programs from Factor Bioscience, which will result in substantial shareholder dilution.
Leadership Change: The acquisition will lead to a leadership change, with Factor co-founder Dr. Matt Angel set to replace Stephen Brady as CEO upon the deal's expected closing in early 2026.
Pipeline Expansion: The deal expands Tempest's pipeline by adding the clinical-stage TPST-2003 program and is projected to extend the company's cash runway into mid-2027.
Market Reaction: Following the announcement, TPST shares fell by 50% to $4.60, nearing its 52-week low, with bearish signals noted across various price trends according to Benzinga Edge data.
Tempest Therapeutics, Inc. is a clinical-stage biotechnology company advancing a diverse portfolio of small molecule product candidates containing tumor-targeted and/or immune-mediated mechanisms with the potential to treat a range of tumors. Its two clinical-stage therapeutic product candidates are Amezalpat and TPST-1495. Amezalpat is an oral, small molecule, selective antagonist of peroxisome proliferator-activated receptor alpha. The ongoing global randomized Phase Ib/II trial of Amezalpat combined with the standard-of-care first-line regimen of atezolizumab and bevacizumab in patients with advanced or metastatic hepatocellular carcinoma. The Company’s second clinical program, TPST-1495, a dual antagonist of the EP2 and EP4 receptors of prostaglandin E2, a pathway implicated in multiple cancers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
