LDR
- Ventyx Biosciences stock surged 62.5% to $16.34 after-hours as Eli Lilly entered advanced acquisition talks valued over $1 billion
- The deal would value VTYX at double its $500 million Tuesday market cap with sources saying an announcement could come imminently
- Ventyx stock gained 28.52% during regular trading and was halted for volatility before the after-hours spike
- The San Diego biotech develops oral pills for Crohn’s disease, rheumatoid arthritis, and obesity-related cardiovascular disease
- VTYX stock has rallied 315% over 12 months with the acquisition adding to Eli Lilly’s $1 trillion market cap portfolio
Ventyx Biosciences stock rocketed 62.5% in after-hours trading Tuesday after reports emerged that Eli Lilly wants to buy the company. VTYX shares hit $16.34 following the acquisition news.
Ventyx Biosciences, Inc., VTYX
The Wall Street Journal broke the story, citing sources familiar with the negotiations. Eli Lilly is offering more than $1 billion for Ventyx Biosciences.
That price tag represents roughly double the company’s Tuesday closing market cap of $500 million. VTYX stock had already gained 28.52% during regular hours before the buyout reports surfaced.
Trading in Ventyx Biosciences stock was halted during the day due to volatility. The shares closed at $10.05 before jumping again after-hours.
Sources told reporters a deal announcement could happen soon. Neither Ventyx Biosciences nor Eli Lilly have confirmed the acquisition talks.
Why Eli Lilly Wants Ventyx Biosciences
Ventyx Biosciences develops oral medications for inflammatory diseases. The San Diego-based biotech company focuses on conditions like Crohn’s disease and rheumatoid arthritis.
One Ventyx drug candidate is currently in mid-stage trials. That treatment targets cardiovascular disease linked to obesity.
The company’s pipeline centers on NLRP3 proteins. These proteins play a key role in how the body responds to inflammation.
Jefferies analysts say big pharma companies want NLRP3 treatments. Roche Holding and Novo Nordisk have both shown interest in this drug category.
Buying Ventyx Biosciences would give Eli Lilly new autoimmune and obesity treatments. The pharmaceutical giant currently has a $1 trillion market value.
Ventyx Biosciences Stock Performance
VTYX stock has been a major winner this year. Shares have climbed 315% over the past 12 months.
The company’s market cap now sits at $717.2 million after the after-hours surge. Ventyx Biosciences stock trades in a 52-week range of $0.78 to $25.00.
The current price is about 38% from the low to the high. The stock’s Relative Strength Index stands at 60.68.
Eli Lilly is paying a 100% premium over Ventyx’s pre-news valuation. Biotech acquisitions typically command high premiums for pipeline potential.
Wall Street Journal sources say the Ventyx Biosciences acquisition talks are in advanced stages. The deal timeline points to an imminent announcement.
