VECT - Why Shares of VectivBio Holding Are Up Today
2023-05-22 12:02:21 ET
Shares of VectivBio Holdings (NASDAQ: VECT) were up more than 35% Monday morning after the clinical-stage biotech company received a buyout offer from Ironwood Pharmaceuticals (NASDAQ: IRWD) .
VectivBio's shares are up more than 85% so far this year. Ironwood's shares were down a little more than 2% on Monday morning.
Ironwood, which specializes in gastrointestinal therapies, said it was acquiring VectivBio in a $1 billion all-cash deal, offering $17 a share for VectivBio, a 42% premium of what the stock closed at on Friday. The draw for Ironwood was VectivBio's short bowel syndrome-associated intestinal failure (SBS-IF) therapy, apraglutide, which is in a phase 3 trial. Ironwood said it sees the potential for $1 billion in peak annual sales for apraglutide.
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Why Shares of VectivBio Holding Are Up Today