On Tuesday, a significant surge was observed in the premarket trading of Point Biopharma ( NASDAQ :PNT) shares following Eli Lilly&Co's (NYSE:LLY) announcement of its agreement to acquire the cancer biotech for approximately $1.4 billion. This acquisition aims to expand Eli Lilly (NYSE: LLY )'s oncology therapies into radioligand treatments, which deliver radiation to tumor cells at a closer range.
Point Biopharma's shares rose 84.7% to $12.35, potentially reaching their highest level in more than two years if the gains hold. The all-cash deal valued at $1.4 billion provides Eli Lilly access to Point Biopharma's experimental radioligand therapies, enabling precise targeting of cancer. These therapies combine radioactive particles that kill cells with molecules that attach themselves to the tumors.
Eli Lilly has offered $12.50 per Point Biopharma share held, representing a premium of about 87% to the stock's last close. Both companies expect to close the deal by the end of 2023. Following these developments, Point Biopharma's stock is up approximately 69.4% year-to-date.
In other premarket trading news on Tuesday, ALX Oncology (NASDAQ:ALXO) shares also soared following the unveiling of interim mid-stage data for a trial of its drug treating advanced gastric cancer.
Meanwhile, McCormick (NYSE:NYSE: MKC ) stock slid due to weaker-than-expected net sales for the recent quarter and a larger-than-anticipated drop in product volume partly attributed to declining demand in its Asia-Pacific operations.
Shares of Airbnb (NASDAQ:NASDAQ: ABNB ) fell as analysts at KeyBanc Capital Markets downgraded their rating of the short-term home rental business, citing a decrease in post-pandemic travel activity.
Warner Music Group (NASDAQ:WMG) shares moved higher following UBS analysts' upgrade of the entertainment firm's rating to buy from neutral. Similarly, HP (NYSE:NYSE: HPQ ) shares gained after Bank of America (NYSE:NYSE: BAC ) analysts upgraded the stock to buy from underperform.
Oddity Tech Ltd. (NASDAQ:ODD) stock also climbed as Truist Securities analysts improved their rating to buy from hold, citing the beauty and wellness platform's compelling valuation.
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