Shares of biotechnology company Sigilon Therapeutics (NASDAQ:SGTX) have skyrocketed nearly 700% at the time of writing today after it agreed to be acquired by Eli Lilly & Co.(NYSE:LLY) at $14.92 per share in cash as well as one non-tradeable contingent right (CVR) for an additional $111.64 per share.
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This brings the total consideration per share to $126.56 per share. In comparison, Sigilon shares had closed at $3.93 per share yesterday!
The two companies have been collaborating since 2018 on encapsulated cell therapies. This also includes SIG-002 which is targeted for the treatment of type 1 diabetes. Importantly, the transaction brings together Sigilon’s cell therapy expertise and Lilly’s R&D capabilities.
The acquisition is expected to close in the third quarter of this year.
Today’s more than massive price gains come after a nearly 63.6% drop in Sigilon shares over the past year. In the meantime, short interest in the stock now stands at 10.2%.
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