Checkmate Pharmaceuticals (NASDAQ:CMPI) stock is rocketing higher on Tuesday following news that Regeneron Pharmaceuticals (NASDAQ:REGN) is acquiring the company.
Regeneron Pharmaceuticals is planning to acquire CMPI stock for $10.50 per share. That represents a massive 335.7% premium over the stock’s closing price on Monday. It’s also worth mentioning that the offer from REGN is in cash.
The deal between the two values Checkmate Pharmaceuticals at $250 million. Regeneron Pharmaceuticals’ interest in CMPI is due to its lead investigational candidate vidutolimod. This is a treatment designed to use the immune system to treat various cancers.
Art Krieg, M.D., founder and CSO of Checkmate Pharmaceuticals, said the following about today’s news.
“We believe that the data we have generated with vidutolimod positions Checkmate at the forefront of the innate immune activator field. It is our hope that Regeneron’s resources and expertise will help accelerate the development of vidutolimod and realization of the full potential of our virus-like particle (VLP) platform for immunotherapy.”
Checkmate Pharmaceuticals and Regeneron Pharmaceuticals are expecting the acquisition deal to close in mid-2022. The deal will be completed through a tender offer made by a subsidiary of the latter that will merge with CMPI.
CMPI stock is experiencing heavy trading following today’s merger news. As of this writing, more than 3 million shares of the stock have changed hands. That’s a major increase over its daily average trading volume of only about 13,000 shares.
CMPI stock is up 329% as of Tuesday afternoon.
Investors looking for more stock market news today are in luck!
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On the date of publication, William White 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.
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