POINT Biopharma Global (NASDAQ: PNT) surged in pre-market trading on Tuesday after it was announced that Eli Lilly (NYSE: LLY) would acquire the radiopharmaceutical company. Eli Lilly will acquire POINT for $12.50 per share in cash, bringing the total value of the acquisition to around $1.4 billion.
The acquisition is expected to close by the end of this year. The purchase price payable by LLY indicates a premium of around 87% to POINT’s closing stock price on Oct. 2, the last trading day before the announcement of the transaction, and 68% to the 30-day volume-weighted average price. Eli Lilly stated in its press release that after the closing of the tender offer “Lilly will acquire any shares of POINT that are not tendered in the tender offer through a second-step merger at the same consideration as paid in the tender offer.”
Jacob Van Naarden, President of Loxo@Lilly, the oncology unit of Eli Lilly commented, “We are excited by the potential of this emerging modality [radiopharmaceuticals] and see the acquisition of POINT as the beginning of our investment in developing multiple meaningful radioligand medicines for hard-to-treat cancers, as we have done in small molecule and biologic oncology drug discovery and development.”
What is the Target Price for PNT Stock?
In the past year, PNT stock has declined by more than 11%. However, analysts are bullish about the stock with four unanimous Buys and a consensus price target of $18. This price target implies an upside potential of 169.3% at current levels.
