Shares of Orchard Therapeutics doubled in pre-market trading following the announcement that Japan-based pharmaceutical company Kyowa Kirin will acquire the gene therapy leader for approximately $477.6 million.
The acquisition price is set at $16.00 per American Depositary Share (ADS) in cash, with investors receiving an additional $1.00 per ADS if certain conditions are met.
Orchard specialises in using a patient's own genetically modified stem cells to potentially correct the root cause of genetic diseases through a single treatment.
The acquisition will bolster Kyowa Kirin's portfolio, particularly in the area of rare diseases, and will expedite the development and commercialisation of Orchard's flagship drug, Libmeldy.
This drug is designed for patients with early-onset metachromatic leukodystrophy, a severe inherited metabolic disorder.
Pre-market, the stock was up $7.93, or 98%, to $16.01.