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PAND Stock: Why Pandion Therapeutics Shares Have Skyrocketed Today

Pandion Therapeutics (NASDAQ:PAND) stock is soaring higher on Thursday after announcing that Merck (NYSE:MRK) plans to acquire the clinical-stage biotechnology company.

Merck (MRK) logo outside of corporate building

Source: Atmosphere1 / Shutterstock.com

According to a news release, Merck will spend a total of $1.85 billion to acquire the company. This will have it purchasing all outstanding shares of PAND stock through a subsidiary.

Merck’s offer for Pandion Therapeutics has it valuing PAND stock at $60 per share. That’s a massive 134% premium over the stock’s closing price of $25.63 per share on Wednesday. Shares not tendered in the offering will be acquired by MRK after the merger and exchanged for the same $60 price.

Dr. Dean Y. Li, president of Merck Research Laboratories, had this to say about the news boosting PAND stock up today.

“This acquisition builds upon Merck’s strategy to identify and secure candidates with differentiated and potentially foundational characteristics. Pandion has applied its TALON technology to develop a robust pipeline of candidates designed to re-balance the immune response with potential applications across a wide array of autoimmune diseases.”

Merck still needs to complete customary closing conditions before the deal can close. That will require a majority of PAND stock to be offered before the deal can reach completion. So long as there are no issues, MRK and Pandion Therapeutics expect the deal to close in the first half of 2021.

PAND stock was up 132% and MRK stock was down slightly as of Thursday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2021/02/pand-stock-why-pandion-therapeutics-shares-have-skyrocketed-today/.

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