MRK - Why Prometheus Biosciences Stock Is Skyrocketing This Week
2023-04-20 16:24:00 ET
Shares of Prometheus Biosciences (NASDAQ: RXDX) were skyrocketing 70% higher this week, as of the market close on Thursday, according to data provided by S&P Global Market Intelligence . The huge gain came after Merck (NYSE: MRK) announced on April 16, 2023 that it plans to acquire Prometheus for $200 per share in cash. That translates to a transaction size of around $10.8 billion.
The magnitude of Prometheus' massive jump this week comes as no surprise. The biotech stock closed at $114.01 on the business day prior to Merck's acquisition announcement. The price tag for the buyout is roughly 75% higher than that price.
It's probably fair to say that the acquisition itself took many investors by surprise, though. Prometheus' share price was up only by a single-digit percentage before the news of the Merck deal.
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Why Prometheus Biosciences Stock Is Skyrocketing This Week