LLY - Why Dice Therapeutics Stock Bolted Higher This Week
2023-06-22 13:45:32 ET
Shares of clinical-stage biotech Dice Therapeutics (NASDAQ: DICE) jumped by 37.5% during the first three and a half days of trading this week, according to data provided by S&P Global Market Intelligence . The big gain came after the company announced a $2.4 billion buyout agreement with industry heavyweight Eli Lilly (NYSE: LLY) .
Lilly's $2.4 billion tender offer represents a 40% premium relative to Dice's closing price last Friday. Through this buyout, Lilly will add the experimental immunology medicines DC-806 and DC-853 to its pipeline. DC-806 is presently in midstage testing as a treatment for psoriasis. Wall Street expects the drug's ongoing midstage study to yield top-line data in mid-2024.
Immunology has been a hotbed of business development activity lately. Merck , Pfizer , and now Lilly have all cut deals recently to expand their immunology pipelines, and for good reason.
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Why Dice Therapeutics Stock Bolted Higher This Week