Biotech Values

[DewDiligence]

EXAS-GHDX merger announcement:

https://finance.yahoo.com/news/exact-sciences-genomic-health-combine-110000805.html

Exact Sciences Corp. and Genomic Health, Inc. today announced that the companies have entered into a definitive agreement under which Exact Sciences will combine with Genomic Health for $72.00 per share in a cash and stock transaction valued at $2.8 billion. The transaction, which has been unanimously approved by the Boards of Directors of both companies, is expected to be completed by the end of 2019.

…Under the terms of the agreement, for each share of Genomic Health common stock they own, Genomic Health stockholders will receive $27.50 in cash and $44.50 in shares of Exact Sciences stock, subject to a 10% collar centered on Exact Sciences' volume-weighted average price for the 45 trading days ended July 26, 2019.

…Upon closing, Exact Sciences shareholders are expected to own approximately 91% of the combined company, and Genomic Health stockholders are expected to own approximately 9%.

The nominal buyout price of $72/sh is a 5% premium to GHDX’s close on 7/26/19 (but is a 27% premium to GHDX’s close on 7/23/19).