RXDX - Why Shares of Prometheus Biosciences Are Soaring Monday
2023-04-17 12:09:30 ET
Shares of Prometheus Biosciences (NASDAQ: RXDX) were up more than 69% Monday morning after Merck (NYSE: MRK) said Sunday that it had come to an agreement to buy the clinical-stage biotech for $10.8 billion. Prometheus focuses on therapies to treat immune-mediated diseases.
Its shares hit a 52-week high of $193.79 early in the morning and likely could go higher since Merck has agreed to pay $200 a share. The deal is contingent on Prometheus shareholders' approval, but is expected to be completed by the third quarter of 2023, Merck said.
Prometheus' lead therapy, PRA023, which is in trials to treat ulcerative colitis (UC), Crohn's disease, and other autoimmune disorders, is the main attraction, Merck CEO Robert Davis told Reuters, adding that promising phase 2 clinical trial results that Prometheus released in December make Merck think the drug could be a multimillion-dollar seller. Merck is facing a patent cliff for its lead immuno-oncology blockbuster Keytruda by 2030.
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Why Shares of Prometheus Biosciences Are Soaring Monday