Orchard Therapeutics (NASDAQ:ORTX) stock is rocketing higher on Thursday after the gene therapy company announced an acquisition deal.
Kyowa Kirin has agreed to acquire Orchard Therapeutics for $387.4 million. That has it offering $16 per share for the company’s American Depositary Shares (ADS). A contingent rights deal also allows ORTX stockholders to receive another $1 per share if certain conditions are met. That would bring the total value of the deal to $477.6 million.
That $16 per share offering for ORTX stock is a pretty premium for investors. It represents a 144% premium to the stock’s volume-weighted average price over the prior 30 days. The additional $1 per share will be granted on approval of OTL-200 for the treatment of metachromatic leukodystrophy.
Bobby Gaspar, cofounder and CEO of Orchard Therapeutics, said the following about the deal.
“This is an exciting opportunity designed to accelerate the realization of our shared vision of ending the devastation caused by severe genetic diseases and deliver life-changing value in medical care.”
Timing of the ORTX Stock Deal
Orchard Therapeutics and Kyowa Kirin are expecting the deal to close in the first quarter of 2024. It already has the unanimous support of the companies’ Boards of Directors. Now it just needs approval from holders of ORTX stock and regualtors.
ORTX stock is seeing some 913,000 shares change hands as of Thursday morning. That’s well above the company’s daily average trading volume of about 47,000 shares. The stock is also up 98.3% as of this writing.
Investors seeking out even more of the most recent stock market news will want to keep reading!
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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.
