ARMO Biosciences Inc (NASDAQ: ARMO) is having an amazing day in the market today after news broke that the company will be acquired. Of course, the acquisition came at an incredible premium, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from ARMO;
- and what we’ll be watching for ahead
ARMO To Be Acquired By LLY
As mentioned above, ARMO Biosciences is having an incredibly strong day in the market today after the company announced that it will soon be acquired. In a press release issued early this morning, the company announced that it has entered into a definitive agreement with Eli Lilly and Company (LLY). Under the terms of the agreement, LLY will acquire ARMO at a price of $50 per share. That brings the total acquisition value to approximately $1.6 billion. Under the terms of the agreement, the transaction will be made in cash.
In a statement, Sue Mahony, Ph.D., SVP at LLY and President at Lilly Oncology, had the following to offer:
At Lilly Oncology, we are dedicated to developing cancer medicines that will make a meaningful difference for patients… The acquisition of ARMO BioSciences adds a promising next generation clinical immunotherapy asset to Lilly’s portfolio of innovative oncology medicines.
The above statement was followed up by Levi Garraway, M.D., Ph.D., SVP of global development and medical affairs at Lilly Oncology. Here’s what he had to offer:
As we develop our immuno-oncology portfolio, Lilly will pursue medicines that use the body’s immune system in new ways to treat cancer… We believe that pegilodecakin has a unique immunologic mechanism of action that could eventually allow physicians to offer new hope for many cancer patients.
Finally, the following statement was provided by Peter VAn Vlasselaer, Ph.D., President and CEO at ARMO:
ARMO is proud of the work we have done to advance the study of immunotherapies and of the development of pegilodecakin to-date… Given the resources that Lilly, a leader in oncology R&D, can bring to bear to maximize the value of pegilodecakin and the rest of the ARMO pipeline, we believe it is in the best interest of ARMO, our stockholders and the patients we serve, to execute this transaction.
What We’re Seeing From The Stock
As investors, there’s nothing like seeing an acquisition at a strong premium. After all, these transactions lead to an incredible and immediate return of value to shareholders. With the acquisition news surrounding ARMO Biosciences, it’s no surprise that excited investors are sending the stock toward the top today. At the moment (11:20), ARMO is trading at $49.84 per share after a gain of $20.02 per share or 67.14% 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 ARMO. In particular, we’re interested in following the acquisition. While a definitive agreement has been signed and the transaction has been approved by both companies, it is still subject to customary closing conditions as well as regulatory approval. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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