Biopharmaceutical companies are getting stock price lifts this week after two big deals in the space signal that M&A appetite is ripe.
On Tuesday, GSK PLC (LSE:GSK, NYSE:GSK) revealed it has paid around $2 billion for Bellus Health (TSX:BLU), a Canada-based, late-stage biopharmaceutical company which specialises in respiratory treatments.
A day prior, Merck & Co Inc (NYSE:MRK) announced a bid to acquire Prometheus Biosciences for $10.8 billion in an all-cash deal, as the US drugmaker aims to bolster its pipeline.
Both bids came at a hefty premium: GSK’s offer of US$14.75 per share is more than double Bellus’ Monday closing price of $7.26. Merck, meanwhile, valued Promethus at a 75% premium to its closing share price on Friday.
Big acquisitions like GSK and Merck’s deals have unsurprisingly led to price spikes for clinical-stage biopharmaceutical firms.
One company in particular is BioVie Inc (NASDAQ:BIVI), a Nasdaq-listed clinical-stage company developing innovative therapies to overcome unmet medical needs in chronic debilitating conditions. The Carson City, Nevada-based company, which is valued at just under $300 million, was up nearly 5% on Tuesday.
Investors are waiting for data abstracts from its Phase 2 trials evaluating NE7107 in degenerative dementias and Parkinson’s Disease, which will be presented at the 2023 American Academy of Neurology (AAN) Annual Meeting at the end of April.
Other early-stage companies moving higher on Tuesday:
- Revive Therapeutics Ltd (CSE:RVV, OTCQB:RVVTF) (up 17%): an Ontario-based research and development company focused on drugs for infectious diseases as well as central nervous system and inflammatory disorders.
- ChitogenX Inc (CSE:CHGX, OTCQB:CHNXF) (up 12.5%): a clinical stage regenerative medicine company that develops novel therapeutic tissue repair technologies to improve tissue healing.
- Tiziana Life Sciences Ltd (NASDAQ:TLSA) (up 8.3%): a clinical-stage biopharmaceutical company working on innovative nasal, oral and inhalation approaches in development to provide an improvement in efficacy as well as safety and tolerability compared to intravenous (IV) delivery.
- Genprex, Inc. (NASDAQ:GNPX) (up 6.5%): a clinical-stage gene therapy company focused on developing life-changing therapies for patients with cancer and diabetes.
- Biocept Inc (NASDAQ:BIOC) (up 6.4%): a leading commercial provider of liquid biopsy tests designed to provide physicians with clinically actionable information to improve the outcomes of patients diagnosed with cancer.
- BioVaxys Technology Corp. (CSE:BIOV, OTCQB:BVAXF) (up 4.8%): an early-stage biotechnology company that is developing viral and oncology vaccine platforms, as well as immuno-diagnostics.
- OKYO Pharma Ltd (LSE:OKYO, NASDAQ:OKYO) (up 2.4% in the US): a London- and New York-listed bio-pharmaceutical company focused on developing an innovative approach to dry eye care and ocular pain.
- Vyant Bio (NASDAQ:VYNT) (up 2.2%): an advanced biotechnology drug discovery company that capitalizes on repurposed and novel compounds.
Contact Angela at angela@proactiveinvestors.com
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