Shares of Ignyta Inc.
soared 73% toward a record high in active premarket trade Friday, after the biotechnology company disclosed that it agreed to a merger with Roche Holdings Inc.
in a deal that values Ignyta at about $1.79 billion. Volume topped 900,000 shares about 100 minutes before the open, making it the most actively traded stock in the premarket. The company said in a filing with the Securities and Exchange Commission that Roche will commence a tender offer on Jan. 10 to buy all the outstanding Ignyta shares for $27 a share, a 74% premium to Thursday’s closing price of $15.55. Ignyta had 66.34 million shares outstanding as of Oct. 31, according to recent filings. “Our board of directors believes that accepting the offer from Roche is in the best interests of our company’s shareholders and that Roche is uniquely positioned to continue to advance the development of entrectinib and our other programs, and ultimately maximize the potential value of these programs,” Chief Executive Jonathan Lim wrote in a letter to employees. Ignyta’s stock has nearly tripled (up 193%) year to date through Thursday, while the iShares Nasdaq Biotechnology ETF
has climbed 21% and the S&P 500
has gained 20%.
View more information: https://www.marketwatch.com/story/ignytas-stock-soars-on-heavy-volume-after-roche-merger-deal-2017-12-22