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The latest big biotech merger is sending this stock up 125%
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We've got the the latest massive biotech merger.
Alexion Pharma announced Wednesday that it was buying Synageva BioPharma for $8.4 billion.
The deal includes $115 in cash of 0.6581 shares, which implies a total value of $225.92 per share, according to Reuters. That's nearly 136% more than Synageva's closing price Tuesday.
In premarket trade Wednesday, Synageva shares jumped by more than 125%.
Alexion shares fell by nearly 3%.
In a statement, Alexion said the deal would help it create a larger portfolio of drugs for rare diseases.
"Synageva is an ideal strategic and operational fit for Alexion that aligns with what we know well and do well — providing life-transforming therapies to an increasing number of patients with devastating and rare diseases," Alexion CEO David Hallal said.
"Alexion is uniquely suited to advance Synageva's mission to deliver lifesaving therapies to patients whose diseases were once considered too rare for developing treatments," Synageva CEO Sanj K. Patel said.
It has been a huge year for biotech mergers.
Teva Pharmaceuticals is still pursuing a $43 billion acquisition of Mylan, which had been rejected on grounds that the stock was undervalued. It's the largest takeover attempt in the industry this year.
Biotech and pharma M&A activity through early March was about 94% higher than it was last year, according to Reuters.
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