ARMO Biosciences Inc Shares Skyrocket on $1.6 B Eli Lilly Deal

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ARMO Biosciences Inc (NASDAQ:ARMO) stock is skyrocketing today on news of a massive deal with Eli Lilly And Co (NYSE:LLY).

ARMO Biosciences Inc Shares Skyrocket on $1.6 B Eli Lilly Deal

The deal between the two companies will have Eli Lilly acquiring ARMO Biosciences Inc for $50 per share. This represents a roughly 68% premium to ARMO stock’s closing price on Wednesday. The offer has a total value of $1.60 billion and will be made with cash.

The agreement between ARMO Biosciences Inc and Eli Lilly will have the latter making a tender offer of $50 per share for ARMO stock. The two companies are expecting the deal to close before the end of the second quarter of 2018.

Eli Lilly notes that once the tender offer is complete, it plans to acquire all non-tendered ARMO shares through a second-step merger. This will be for the same price per share as the tender offer and will take place soon after it.

ARMO Biosciences Inc and Eli Lilly note that they still need to complete some customary closing conditions before the deal is complete. They will also still need approval from regulators to go through with the acquisition.

Eli Lilly notes that it is expecting the acquisition of ARMO Biosciences Inc to affect its reported earnings and GAAP guidance for the full year of 2018. However, it says that it won’t affect the company’s Non-GAAP outlook for the full year.

ARMO stock was up 67% and LLY stock was up 2% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/armo-biosciences-stock-up-on-eli-lilly-deal/.

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