Why Audentes Therapeutics Stock Is Skyrocketing Today

What happened

Shares of Audentes Therapeutics (NASDAQ: BOLD) are skyrocketing today, up by 105% as of 2:47 p.m. EST, after the clinical-stage gene therapy specialist announced it has agreed to be acquired.

So what

Astellas Pharma, a pharmaceutical company based in Japan, has agreed to purchase Audentes Therapeutics.

Here are the key terms of the deal:

  • The purchase price is $60 per share. That represents a total equity value of about $3 billion.
  • The offer represents a 110% premium over yesterday’s closing price.
  • This is an all-cash deal.
  • Both companies’ boards have unanimously approved the transaction.
  • Audentes will operate as an independent subsidiary after the deal is completed.

Image source: Getty Images.

Traders are bidding up the share price in response.

Now what

Audentes Therapeutics CEO Matthew Patterson stated: “We are very pleased to enter into this merger agreement with Astellas. With its focus on innovative science and a global network of research, development and commercialization resources, we believe that operating as part of the Astellas organization optimally positions us to advance our pipeline programs and serve our patients.”

The odds of this deal going through look to be very high since both boards have unanimously approved the transaction. Audentes shareholders deserve to take a victory lap today and should start the search for another great healthcare stock.

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Brian Feroldi has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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