The month of August has been witnessing a flurry of biotech takeovers. We had alerted our subscribers to stocks of some of the acquired companies when they were trading at big discounts.
For example, ChemoCentryx acquired by Amgen for $52 per share on Aug.4, 2022, was trading around $13 on June 15, 2021, when we alerted readers to this stock. Global Blood Therapeutics, which was acquired by Pfizer for $68.50 per share on Aug.8, 2022, was trading around $31.80 when alerted our subscribers to it Aug.4, 2021.
Let’s take a look at this week’s deals.
Signify Health Delivers Significant Gains
Shares of Signify Health Inc. (SGFY) touched a new high of $29.88 in intraday trading yesterday, thanks to bidding war for this healthcare company.
Signify Health is a healthcare platform that leverages advanced analytics, technology and nationwide healthcare networks to create and power value-based payment programs.
UnitedHealth, CVS, and Amazon are in the fray, with UnitedHealth putting up the highest bid of over $30 a share, according to reports.
We had alerted our subscribers to SGFY on Aug.5, 2022, when it was trading around $19. Yesterday’s intraday high of $29.88 reflects a gain of 57% in just a few trading days.
Aerie Caught Alcon’s Eye
Eye-care company Alcon (ALC) has agreed to acquire Aerie Pharmaceuticals Inc. (AERI) for $15.25 per share, which equates to a value of approximately $770 million.
Aerie Pharma has two marketed drugs – Rhopressa and Rocklatan.
Rhopressa (netarsudil ophthalmic solution) 0.02% is indicated for the reduction of elevated intraocular pressure in patients with open-angle glaucoma or ocular hypertension. Rocklatan (netarsudil and latanoprost ophthalmic solution) 0.02%/0.005% is indicated for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. The two drugs are approved in the U.S. and Europe.
We had alerted readers to AERI on Feb.25, 2022, when it was trading around $6.86. The offer price of $15.25 represents a gain of over 120% in 6 months.
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