Senomyx (SNMX) Stock: Soaring On Acquisition News

Senomyx Inc. SNMX Stock NewsSenomyx Inc. (NASDAQ: SNMX) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it will be acquired under the terms of a recent definitive merger agreement. Of course, the news excited investors who are sending the stock on a run for the top. Today, we’ll talk about:

  • The acquisition news;
  • what we’re seeing from SNMX as a result; and
  • what we’ll be watching for with regard to the stock ahead.

SNMX Announces Acquisition News

As mentioned above, Senomyx is having a great start to the trading session this morning after announcing that it will soon be acquired. In a press release issued early this morning, the company said that it has entered into a definitive merger agreement with Firmenich. Under the terms of the agreement, Firmenich will acquire all outstanding SNMX common stock at a price of $1.50 per share in an all-cash transaction.

The price per share represents an incredible premium of 43% over the company’s closing price on Friday and a 39% premium over the company’s VWAP. The transaction has been unanimously approved by the Boards of Directors of both companies involved in the transaction and the deal is expected to close in the fourth quarter.

In a statement, Patrick Firmenich, Chairman of the Board at Firmenich, had the following to offer:

Senomyx has established itself as a leader in taste innovation and a recognized pioneer in sweet, cooling and bitter solutions… Building on our long-term partnership spanning more than a decade, we look forward to welcoming Senomyx into Firmenich to lead in taste and nutrition.

The above statement was followed up by John Poyhonen, President and CEO at SNMX. Here’s what he had to offer:

We are excited to be joining Firmenich… Firmenich’s commitment to innovation and delivery of world-class commercialization capabilities combined with our long standing relationship makes this deal the ideal fit for our companies. We believe this merger will allow the Senomyx discoveries to reach their full potential. I would like to personally thank all our employees for their dedication and contributions in building a leading proprietary taste science technology platform that will benefit consumers around the globe well into the future.

What We’re Seeing From The StockĀ 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Senomyx, the news proved to be overwhelmingly positive. After all, the acquisition of the company will lead to an immediate and substantial return of value for investors. So, it comes as no surprise that excitement is hitting the market and the stock is running for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:36), SNMX is trading at $1.49 per share after a gain of $0.44 per share or 41.90% 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 SNMX. In particular, we’re interested in following the story surrounding the acquisition of the company. While the agreement is a definitive one, it is still subject to customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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