Neon Therapeutics News: NTGN Stock Rockets 38% on BioNTech Deal
BioNTech is acquiring Neon Therapeutics
By William White, InvestorPlace Writer Jan 16, 2020, 4:06 pm EST
Neon Therapeutics (NASDAQ:NTGN) news for Thursday about a deal with BioNTech (NASDAQ:BNTX) has NTGN stock soaring on Thursday.
A Neon Therapeutics news releasereveals that BioNTech is going to be acquiring the company. This will have it purchasing all shares of NTGN stock in a deal valued at roughly $67.00 million.
The deal will have Neon Therapeutics merging with Endor Lights, which is a wholly-owned subsidiary of BioNTech. Investors in NTGN stock will receive 0.063 shares of BNTX stock in exchange for each NTGN share that they own.
This offer for NTGN stock values it at $2.18 per share. That’s based on BNTX stock’s closing price of $34.55 on Wednesday. The offer of $2.18 per share for NTGN stock is a roughly 77.24% premium over its closing price of $1.23 on Wednesday.
Ugur Sahin, MD, co-founder and CEO of BioNTech, says this about the deal with Neon Therapeutics.
“This acquisition fits with our strategy to expand our capabilities and build our presence in the U.S. and further strengthens our immunotherapy pipeline. I am particularly excited about the adoptive T cell and neoantigen TCR therapies being developed by Neon, which are complementary to our pipeline and our focus on solid tumors.”
The Neon Therapeutics news release notes that the deal has the full support of the company’s Board of Directors. Approval from shareholders and regulators is still needed. So long as there are no problems here, the deal will close in the second quarter of 2020.
NTGN stock was up 38.21% and BNTX stock was down 6.66% when markets closed on Thursday. https://investorplace.com/2020/01/neon-therapeutics-news-ntgn-stock-rockets-38-on-biontech-deal/