PTC Therapeutics, Inc. (NASDAQ: PTCT) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced news surrounding an acquisition that proved to be a source of exitement for investors. Today, we’ll talk about:
- The acquisition news;
- what we’re seeing from PTCT as a result; and
- what we’ll be watching for ahead.
PTCT Announces Acquisition News
As mentioned above, PTC Therapeutics is having an incredibly strong start to the trading session this morning after announing acquisition news. In a recent press release issued by the company, it announced that it has entered into an agreement to acquire Agilis Biotherapeutics Inc. in a deal worth $200 million.
Agilis Biotherapeutics is a biotech company that’s focused on advancing its gene therapy platform for rare monogenic diseases that affect the central nervous system. In the release, PTCT said that the transaction has been approved by the Boards of Directors at both companies. In a statement, Stuart W. Peltz, Ph.D., CEO at PTCT, had the following to offer:
The addition of the gene therapy platform transforms PTC and aligns with our vision of being a leader in the treatment of rare disorders… We are impressed with the clinical results shown by the AADC program and are excited with the potential to quickly bring this therapy to patients. We look forward to advancing the Friedreich ataxia and Angelman syndrome programs into the clinic in the next two years.
Mark Pykett, DVM, Ph.D., President and CEO at Agilis Biotherapuetics followed up the statement with the following comment surrounding the acquisition:
I am proud of the accomplishments achieved by Agilis culminating with this value-creating transaction… PTC provides a global infrastructure and proven capabilities, which we believe will enable our goal of providing therapy to patients suffering from rare CNS disorders. I look forward to joining PTC and supporting the advancement of the programs to provide value to patients.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of PTC Therapeutics, the news proved to be overwhelmingly positive. After all, the company’s acquisition of Agilis brings a new gene therapy platform to the company’s strong portfolio of products under development. So, it comes as no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:20), PTCT is tradinga t $39.70 per share after a gain of $3.15 per share or 8.62% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PTCT. In particular, we’re interested in following the story surrounding the acquisition and excited to see what the company does with the gene therapy product following the closing of the transaction. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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