Why Did ESSA Pharma Plunge 58.55%?

On August 26, 2025, ESSA Pharma's stock plummeted by 58.55% in pre-market trading, marking a significant downturn for the company.

ESSA Pharma Inc. announced a return of capital distribution of $80,000,000 to shareholders as part of the discontinuance and winding-up of the business. This decision follows the previously announced transaction with XenoTherapeutics, Inc., under which Xeno will acquire all of the issued and outstanding common shares. The move indicates a strategic shift for ESSA Pharma, as it prepares to exit the market and distribute its remaining assets to shareholders.

The company's decision to wind up its operations and distribute capital to shareholders is a clear signal of its intent to focus on maximizing value for its investors. This move comes after a period of strategic evaluation and negotiations with XenoTherapeutics, Inc., which will take over the company's assets and operations. The acquisition by XenoTherapeutics is expected to provide a new direction for the company's assets, potentially leading to further developments in the pharmaceutical industry.