Point Biopharma (NASDAQ:PNT) stock is rocketing higher on Tuesday after the radiopharmaceutical company announced an acquisition deal.
Eli Lilly (NYSE:LLY) has agreed to acquire Point Biopharma in a $1.4 billion deal. That will see the company acquire all outstanding shares of PNT stock for $12.50 in cash. That represents an 87% increase in the closing price of PINT shares on Monday. It’s also 68% over its 30-day volume-weighted average price.
Point Biopharma and Eli Lilly are expecting the deal to close near the end of the year. The offer has the approval of both companies’ boards of directors. Investors will also note that Eli Lilly will use a tender offer to acquire PNT stock. That means a majority of shares need to be offered for the deal to go through.
Jacob Van Naarden, president of Loxo at Eli Lilly, said the following about the acquisition of Point Biopharma:
“We are excited by the potential of this emerging modality and see the acquisition of POINT as the beginning of our investment in developing multiple meaningful radioligand medicines for hard-to-treat cancers, as we have done in small molecule and biologic oncology drug discovery and development.”
What This Means for PNT Stock
Eli Lilly notes that it is treating this agreement as an asset purchase or merger. That means that when the deal goes through, shares of PNT stock will no longer be publicly traded. The company will also use a second-step merger to acquire outstanding shares not bought in the tender offer.
Today’s news brings with it heavy trading of PNT stock on Tuesday. As of this writing, more than 6 million shares of the stock have changed hands. That’s well above its daily average trading volume of around 539,000 shares.
PNT stock is up 84.3% as of Tuesday morning.
There’s plenty of other stock market news for investors to read about below!
We have all of the biggest stock market stories that traders need to know about on Tuesday! A few examples of that include what’s happening with shares of Fisker (NYSE:FSR), SmileDirectClub (NASDAQ:SDC) and Aerwins Technologies (NASDAQ:AWIN) stock today. All of that news is available at the following links!
More Stock Market News for Tuesday
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- Why Is Aerwins Technologies (AWIN) Stock Down 18% Today?
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.
