Global Blood Therapeutics Inc (NASDAQ:GBT) shares are on the rise over talks that another pharma giant may be acquiring it.
Novo Nordisk A/S (ADR) (NYSE:NVO) is reportedly in talks to takeover the company, which has an impressive portfolio of treatments to treat serious blood disorders. Global Blood Therapeutics seems like an attractive buy to Novo Nordisk due to the latter’s declining popularity of its diabetes medications.
As a result, the company has seen its sales take a hit in recent quarters, while Global Blood Therapeutics has been developing cutting-edge medications to treat a variety of blood diseases. Novo Nordisk is working alongside an investment banker to explore its best options.
A series of negotiations between the two parties is expected later this week, but it is unclear whether or not Global Blood Therapeutics will consider offers from other parties. Sources revealing this information asked to remain anonymous for the time being.
As previously mentioned, Novo Nordisk’s struggles comes from a failure to update its diabetes medication in addition to the fact that it has been a rough time for pharmaceutical companies looking to treat diabetes in recent months.
Novo Nordisk CEO Lars Fruergaard Jorgensen took over in January and he certainly feels the pressure to revamp the company’s portfolio with new treatments that will help its sales improve over the coming quarters.
GBT stock grew 25.4% Wednesday.