Landos Biopharma (NASDAQ:LABP) stock is on the rise Monday after the company announced an acquisition deal with AbbVie (NYSE:ABBV).
AbbVie is acquiring Landos Biopharma for $20.42 per share in cash. That represents a roughly 160% premium over its prior closing price on Friday. It also comes to $137.5 million for the clinical-stage biopharmaceutical company.
In addition to this, the deal includes one non-tradable contingent value right per share. This can have a value of up to $11.14 per share, or $75 million. This is tied to the achievement of a clinical development milestone.
Roopal Thakkar, Senior Vice President and Chief Medical Officer of Global Therapeutics at AbbVie, said the following about the acquisition:
“With this acquisition, we aim to advance the clinical development of NX-13, a differentiated, first-in-class, oral asset with the potential to make a difference in the lives of people living with ulcerative colitis and Crohn’s disease.”
How This Affects LABP Stock
Investors are excited about the deal with AbbVie, which is set to close in the second quarter of 2024. This also brings with it heavy trading of the company’s shares. As a result, more than 365,000 units have traded on Monday afternoon. That’s well above its daily average trading volume of about 10,000 shares.
LABP stock is up 168.4% as of this writing.
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On the date of publication, William White 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.
