Last week, Global Blood Therapeutics (NASDAQ:GBT) stock was thrust into the spotlight on reports of a potential buyout bid from Pfizer (NYSE:PFE). Today, though, Pfizer has officially disclosed that it will buy the company for $5.4 billion. Now, GBT stock is moving more than 4% higher this morning.
Global Blood Therapeutics mainly develops treatments for sickle cell disease (SCD). The company’s flagship product is Oxbryta, which “directly targets the root cause” of SCD. The U.S. Food and Drug Administration (FDA) has already approved Oxbryta for use.
Last week, The Wall Street Journal reported that Pfizer was “in advanced talks” to buy out Global Blood Therapeutics “for about $5 billion.” That report, while not a full confirmation of the buyout, was enough to send GBT stock higher.
Some folks might have worried, though, that this would be an instance of “buy the rumor, sell the news.” However, the GBT stock bulls are still clearly in control after Pfizer officially sealed the deal on the acquisition.
What’s Happening with GBT Stock?
Currently, GBT stock is trading above the $65 level. Bear in mind, at the beginning of August, shares traded at around $33 per share.
Of course, today’s 4%-plus rally may not sound too impressive. But it’s really just a continuation of last week’s bullish momentum. Without a doubt, last Friday’s report already had traders hyped-up about the potential acquisition.
Meanwhile, PFE stock is barely moving at all this morning. This isn’t too surprising, however. The takeover news will certainly be more impactful to Global Blood Therapeutics than Pfizer. PFE stock is up slightly in the green today.
In a press release, Pfizer clarified its rationale for buying out Global Blood Therapeutics:
“The acquisition complements and further enhances Pfizer’s more than 30-year heritage in rare hematology and reinforces the company’s commitment to SCD by bringing expertise and a leading portfolio and pipeline with the potential to address the full spectrum of critical needs in this underserved community.”
Looking forward, there may be benefits here for medical practitioners and patients. GBT stock investors are winning today as well; the momentum continues to keep Global Blood Therapeutics in the spotlight.
On the date of publication, David Moadel did not hold (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.