The corporate might quickly be swallowed by a really giant peer — which additionally occurs to be a enterprise associate.
Scientific-stage biotech Protagonist Therapeutics (PTGX 29.77%) was all the trend on the inventory market Friday. The corporate’s share worth closed a dizzying 29.8% larger on the day, because of intense takeover hypothesis. That leap was significantly notable contemplating it was fairly a downbeat day for shares total, with the S&P 500 (^GSPC -2.71%) sliding by virtually 3%.
Sale within the works?
That hypothesis was fired that morning by The Wall Road Journal, which reported healthcare big Johnson & Johnson was in discussions to amass Protagonist. Though it gleaned this from unidentified “individuals conversant in the matter,” the monetary newspaper had few particulars to report in regards to the obvious negotiations.
Picture supply: Getty Pictures.
Protagonist is well-known to Johnson & Johnson, as the 2 firms collaborate on the event of a drug that combats immune problems comparable to ulcerative colitis. If and when the treatment is developed efficiently and involves market, Johnson & Johnson will maintain its unique commercialization rights.
If the report is correct, the would-be acquirer would not be snapping up Protagonist at a cut price. Thanks largely to optimistic leads to scientific trials for a number of of its pipeline medication, the biotech’s share worth had risen in extra of 70% 12 months thus far — and that was earlier than Friday’s monster pop.
Mum’s the phrase… for now
Neither Protagonist nor Johnson & Johnson has but commented on the WSJ report, which is par for the course in early phases of such occasions. I ought to stress that this needs to be thought-about hypothesis at this level, though I’d advise traders of both firm (or each) to maintain a pointy eye on how the obvious deal would possibly form up.
Eric Volkman has no place in any of the shares talked about. The Motley Idiot recommends Johnson & Johnson and Protagonist Therapeutics. The Motley Idiot has a disclosure coverage.
