Why Is Renovacor (RCOR) Stock Up 18% Today?

  • Renovacor (RCOR) stock is gaining Tuesday after signing a deal with Rocket Pharmaceuticals (RCKT).
  • This will have the latter acquiring the former.
  • The deal will see holders of RCOR stock receive shares of RCKT stock.
RCOR Stock - Why Is Renovacor (RCOR) Stock Up 18% Today?

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Renovacor (NYSEMKT:RCOR) stock is gaining on Tuesday after announcing that Rocket Pharmaceuticals (NASDAQ:RCKT) is acquiring it.

That agreement will have Rocket Pharmaceuticals offering 0.1676 shares of RCKT stock in exchange for each outstanding share of RCOR stock. This implies a value of $2.60 for RCOR shares. That’s a roughly 37% premium over the stock’s closing price on Monday!

The offering from Rocket Pharmaceuticals implies an equity value of $53 million for Renovacor. Also, holders of RCOR stock will hold a 4.6% stake in RCKT stock once the deal is complete.

Gaurav Shah, M.D., CEO of Rocket Pharmaceuticals, said the following about the deal:

Given the positive pediatric safety data previously announced from our Phase 1 RP-A501 Danon Disease program, and the upcoming pediatric efficacy data and longer-term adult cohort data we anticipate presenting at the Heart Failure Society of America (HFSA) Scientific Meeting at the end of this month, this strategic acquisition gives us what we believe is the broadest platform in the field to address these devastating rare cardiac diseases.

When Will the Deal Close?

The deal is expected to close by the first quarter of 2023, but first, it needs shareholder approval. RTW Investments, a significant shareholder in Renovacor and Rocket Pharmaceuticals, has agreed to vote in favor of the acquisition.

As of this writing, some 943,000 shares of RCOR stock have been traded. That’s well above its daily average trading volume of about 12,000 shares.

RCOR stock is up 18.2% as of Tuesday morning.

Investors looking for more hot stock market news today will want to keep reading!

InvestorPlace is home to all of the latest stock market news traders need to know about for Tuesday! A few examples include why shares of Virax Biolabs (NASDAQ:VRAX), Ford (NYSE:F), and Mobile Global Esports (NASDAQ:MGAM) are moving today. You can find out more at the following links!

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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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