2023-06-29 07:11:28 ET
- Shares of Sigilon Therapeutics ( NASDAQ: SGTX ) surged over 650% pre-market Thursday after Eli Lilly ( NYSE: LLY ) agreed to acquire the nano-cap biotech for $14.92 per share in cash, implying a total value of ~$35M.
- Before the deal, Eli Lilly ( LLY ) had partnered with Sigilon ( SGTX ) to develop encapsulated cell therapies for the treatment of type 1 diabetes.
- Under the terms, Sigilon ( SGTX ) shareholders will get one non-tradeable contingent value right (CVR) in addition to upfront cash.
- The CVR will entitle them to receive up to an additional $111.64 per share in cash, and with its value, the deal is worth $126.56 per share, or ~$310M in total.
- The transaction is expected to close in Q3 2023, after which Eli Lilly ( LLY ) will recognize it in its financials as a business combination or an asset acquisition. LLY shares gained ~1% pre- market in reaction.
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Sigilon stock skyrockets 650% on buyout deal with Eli Lilly