TLDR
- Ventyx Biosciences (VTYX) stock jumped 62.5% in after-hours trading following reports that Eli Lilly is in advanced talks to acquire the company for over $1 billion
- The potential deal would value Ventyx at approximately double its Tuesday market cap of just over $500 million, with an announcement possible soon
- Ventyx develops oral therapies for inflammatory diseases like Crohn’s disease and rheumatoid arthritis, with one candidate in mid-stage trials for obesity-related cardiovascular disease
- The acquisition would expand Eli Lilly’s portfolio in autoimmune diseases and obesity treatments, competing with other pharma giants like Roche and Novo Nordisk in the NLRP3 space
- VTYX shares have surged 315% over the past 12 months and trading was temporarily halted due to volatility from the acquisition news
Ventyx Biosciences stock exploded 62.5% in after-hours trading Tuesday, reaching $16.34. The surge came after The Wall Street Journal reported that Eli Lilly is in advanced talks to acquire the biotech company.
The potential Ventyx Biosciences acquisition would value the company at more than $1 billion. That’s roughly double its Tuesday market cap of just over $500 million.
VTYX stock had already climbed 28.52% during regular trading, closing at $10.05. Trading was temporarily halted due to volatility.
Ventyx Biosciences, Inc., VTYX
Sources told The Wall Street Journal that a deal could be announced imminently. Neither Ventyx nor Eli Lilly responded to requests for comment.
Ventyx Biosciences Pipeline and Products
Ventyx Biosciences operates as a clinical-stage biotechnology company based in San Diego. The firm develops oral treatments for inflammatory diseases.
Its pipeline targets conditions including Crohn’s disease and rheumatoid arthritis. One drug candidate is in mid-stage clinical trials for cardiovascular disease linked to obesity.
The company focuses on NLRP3, a protein complex involved in inflammatory response. Jefferies analysts note that major drugmakers like Roche Holding and Novo Nordisk have shown interest in this category.
For Eli Lilly, the acquisition would expand its autoimmune disease and obesity treatment portfolio. The pharmaceutical giant currently holds a $1 trillion market value.
VTYX Stock Performance and Metrics
Ventyx Biosciences stock has delivered strong returns over the past year. VTYX shares have surged 315% over the last 12 months.
The company’s market capitalization now stands at approximately $717.2 million. The stock’s 52-week range spans from $0.78 to $25.00.
The current price sits about 38% from its 52-week low to high. The Relative Strength Index reads 60.68.
The $1 billion-plus valuation represents a 100% premium over Ventyx’s pre-news market value. This premium level is common in biotech acquisitions.
Sources indicate negotiations between Ventyx Biosciences and Eli Lilly are advanced. The timeline suggests an announcement could come very soon.
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