NVO - Why Forma Therapeutics Holdings Stock Is On Fire Today
Shares of Forma Therapeutics Holdings (NASDAQ: FMTX) were up by a healthy 49% as of 1:17 p.m. ET Thursday afternoon. The small-cap biotech's stock is roaring higher in response to a $1.1 billion buyout agreement with Danish drugmaker Novo Nordisk (NYSE: NVO) .
Novo Nordisk has agreed to pay $20 a share for Forma Therapeutics in cash. This deal represents a 49.2% premium relative to Forma Therapeutics' closing price Wednesday afternoon. The two companies said in their shared press release that the transaction is expected to close in the fourth quarter of 2022.
Through this deal, Novo Nordisk will gain access to Forma Therapeutics' experimental sickle cell disease candidate, etavopivat. The drug is currently in a combined phase 2/3 trial as a once-daily oral therapy for the rare blood disorder.
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Why Forma Therapeutics Holdings Stock Is On Fire Today