LLY - Why Eli Lilly Stock Was Looking Sickly Today
2023-10-03 18:33:22 ET
Eli Lilly 's (NYSE: LLY) latest acquisition didn't exactly meet with widespread shareholder approval on Tuesday. After announcing that it signed a deal to acquire Point Biopharma Global (NASDAQ: PNT) , its share price headed south to end the day 2.4% lower. That was a steeper fall than the 1.4% dip of the S&P 500 index.
Before market open, Eli Lilly divulged that it has agreed to acquire Point for a total of roughly $1.4 billion in cash, or $12.50 per share. The latter is nearly double Point's closing share price on Monday. Eli Lilly didn't hesitate to mention that the boards of directors of both companies have approved the deal.
The move comes amid heavy demand for cancer therapies, a segment in which many pharmaceutical companies and biotechs are competing. Eli Lilly's cancer drug Alimta has been successful, and the company wants to expand on this to be more of a presence in the segment. Investors might consider the Point deal an indication that Eli Lilly still has some distance to reach this goal.
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Why Eli Lilly Stock Was Looking Sickly Today