Today, one of the big movers in the market is Aditxt (NASDAQ:ADTX). Indeed, ADTX stock has risen approximately 8% at the time of writing on very heavy volume. However, at one point today, shares of this biotech stock were up nearly 40%.
This move is indicative of previous rallies investors have seen in ADTX stock. As a biotech player focused on improving the health of the immune system, investors have had reason to speculate on momentum-driven moves with this stock. However, most of this previous momentum was driven by interest in small caps in the biotech sector. The company’s product pipeline, while intriguing, has not held up to risk-off selloffs of late. Accordingly, investors have seen significant declines this year during periods of relatively little news.
That said, today, there’s some news surrounding ADTX stock. And investors seem to like what they’re hearing.
Let’s dive into what’s driving Aditxt higher today.
ADTX Stock Higher on Acquisition Agreement
Today, Aditxt announced the company has reached a definitive agreement to acquire a subsidiary of AiPharma Global Holdings LLC. This deal stipulates that Aditxt will own all the assets of AiPharma. For investors bullish on Aditxt’s future prospects, this deal is one that’s being viewed favorably right now.
Well, AiPharma is a biopharma play focused on an antiviral drug used to target Covid-19 and other infectious diseases. Through this acquisition, AiPharma will receive the liquidity and stability it needs to bring its favipiravir drug to market. Or, at least, investors hope so.
The acquisition of a company focused on commercializing antiviral therapies seems to make sense for Aditxt. Accordingly, investors seem to like the scope and size of the deal today. Indeed, the deal includes an increase in the secured loan provided by Aditxt to AiPharma to $15 million from $8.5 million, and a stock component as well.
This business combination is still pending and has not been finalized yet. However, given the interest around companies providing therapies and drugs treating Covid-19, there’s a lot of potential upside attached to this deal. Accordingly, ADTX stock appears to be a speculative bet investors are willing to make today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.