Tempest Therapeutics Retail Chatter Explodes As Cancer Drug Developer Mulls Possible Merger

Shares of Tempest Therapeutics (TPST) ended higher on Wednesday amid a broader market rebound on the U.S. pausing tariffs and extended gains after-hours after the company said it was exploring strategic alternatives. 

The cancer drug developer said its options included a merger, acquisition, partnership, or licensing deal to advance its pipeline and maximize shareholder value. 

The company has retained MTS Health Partners to assist with the process.

CEO Stephen Brady emphasized the company's strong data and regulatory momentum, pointing to Phase 2 results for amezalpat showing a six-month survival benefit in advanced liver cancer and FDA clearance for a pivotal Phase 3 study. 

However, Brady said capital markets "have been unavailable to support the next stage of advancement."

On Stocktwits, sentiment for Tempest surged into the 'extremely bullish' zone from 'neutral' a day ago, accompanied by message volume soaring over 135% in the 24 hours to late Wednesday.

One user said the CEO was "soliciting bidders" through this move following the recent 1-for-13 reverse stock split.

"Poison pill is still at $25. Now, anyone who wants more than a 10 percent ownership stake can buy whatever they want at $25 or more. Well played, Mr. Brady!" they wrote.

Another pinned hopes on "well-known" MTS Partners fetching a good merger deal for Tempest. "Even If TPST gets a below-average deal at $360 million, we're still looking at $100 per share."

Amezalpat, Tempest's lead candidate, has received both Orphan Drug and Fast Track designations from the FDA. 

TPST-1495, a dual EP2/EP4 antagonist, is also advancing toward a Phase 2 trial in familial adenomatous polyposis (FAP) with NCI support.

Tempest Therapeutics stock has lost over 34% this year.

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