Long
Sigilon Therapeutics (NASDAQ: SGTX)
Major Surge in Sigilon Therapeutics (NASDAQ: SGTX) Shares Following Acquisition Agreement with Eli Lilly (NYSE: LLY)
Share Price Surge: Last Thursday, shares of Sigilon Therapeutics (SGTX) experienced an astounding surge of over 650% during pre-market trading. The significant increase in share price was a direct response to the announcement that pharmaceutical company Eli Lilly (LLY) had reached an agreement to acquire Sigilon, a nano-cap biotech firm. The acquisition price is set at $14.92 per share in cash, resulting in an overall valuation of approximately $35 million.
Additional Benefit for Shareholders: As part of the acquisition deal, Sigilon (SGTX) shareholders will not only receive upfront cash but also be granted one non-tradeable contingent value right (CVR). This CVR entitles shareholders to potentially receive an additional $111.64 per share in cash. Taking into consideration the value of the CVR, Eli Lilly's total consideration for each SGTX share amounts to $126.56, equivalent to an approximate total of $310 million.
Expected Closing and Financial Implications: The transaction is anticipated to conclude in the third quarter of 2023. Upon completion of the acquisition, Eli Lilly (LLY) will record the transaction in its financials either as a business combination or an asset acquisition. The reaction in the market was positive, with Eli Lilly's shares gaining around 1% during pre-market trading.
Analyst Recommendation: In response to the significant news, analysts on Wall Street have upgraded their rating for Sigilon Therapeutics' stock to BUY. This change reflects the positive outlook of analysts regarding the company's future prospects, considering the acquisition agreement with Eli Lilly.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
Share Price Surge: Last Thursday, shares of Sigilon Therapeutics (SGTX) experienced an astounding surge of over 650% during pre-market trading. The significant increase in share price was a direct response to the announcement that pharmaceutical company Eli Lilly (LLY) had reached an agreement to acquire Sigilon, a nano-cap biotech firm. The acquisition price is set at $14.92 per share in cash, resulting in an overall valuation of approximately $35 million.
Additional Benefit for Shareholders: As part of the acquisition deal, Sigilon (SGTX) shareholders will not only receive upfront cash but also be granted one non-tradeable contingent value right (CVR). This CVR entitles shareholders to potentially receive an additional $111.64 per share in cash. Taking into consideration the value of the CVR, Eli Lilly's total consideration for each SGTX share amounts to $126.56, equivalent to an approximate total of $310 million.
Expected Closing and Financial Implications: The transaction is anticipated to conclude in the third quarter of 2023. Upon completion of the acquisition, Eli Lilly (LLY) will record the transaction in its financials either as a business combination or an asset acquisition. The reaction in the market was positive, with Eli Lilly's shares gaining around 1% during pre-market trading.
Analyst Recommendation: In response to the significant news, analysts on Wall Street have upgraded their rating for Sigilon Therapeutics' stock to BUY. This change reflects the positive outlook of analysts regarding the company's future prospects, considering the acquisition agreement with Eli Lilly.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.