Why Is Prometheus Biosciences (RXDX) Stock Up 70% Today?

  • Prometheus Biosciences (RXDX) stock is rising on acquisition news.
  • Merck (MRK) plans to buy it for $10.8 billion.
  • That comes to $200 per share for RXDX stock.
RXDX Stock - Why Is Prometheus Biosciences (RXDX) Stock Up 70% Today?

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Prometheus Biosciences (NASDAQ:RXDX) stock is on the rise Monday after the company revealed an acquisition deal with Merck (NYSE:MRK).

The deal has Merck offering a total of $10.8 billion to acquire Prometheus Biosciences. That comes to $200 per share for RXDX stock, which will be paid in cash. This offer represents a 75.4% premium over the stock’s closing price on Friday!

The acquisition of Prometheus Biosciences would bolster Merck’s treatment of immune-mediated diseases. RXDX is currently developing its PRA023 antibody as a treatment for intestinal inflammation and fibrosis.

Robert Davis, chairman and CEO of Merck, said the following about the news:

“The agreement with Prometheus will accelerate our growing presence in immunology where there remains substantial unmet patient need. This transaction adds diversity to our overall portfolio and is an important building block as we strengthen the sustainable innovation engine that will drive our growth well into the next decade.”

Investors and regulators both have to give their approval before this deal can go through. If all goes well, it should close in the third quarter of 2023.

RXDX Stock Movement

With news of Merck buying Prometheus Biosciences, shares of RXDX stock are seeing heavy trading today. As of this writing, more than 1.4 million shares of the company’s stock have changed hands. To put that in perspective, its daily average trading volume is closer to 477,000 shares.

RXDX stock is up 69.7% during pre-market trading on Monday morning.

Investors seeking out more of the latest stock market news will want to keep reading!

We’ve got all of the hottest stock market coverage traders need to know about on Monday! Among that is what has shares of Satsuma Pharmaceuticals (NASDAQ:STSA) stock heading higher, as well as the biggest pre-market stock movers this morning, and more. You can read up on all of that at the links below!

More Monday Stock Market News

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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/04/why-is-prometheus-biosciences-rxdx-stock-up-70-today/.

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