Biotech Values

[DewDiligence]

Re: HZNP discounts and premiums

As I'm typing, HZNP is trading at a 19% discount to AMGN’s cash buyout price of $116.50, versus a mere 4% discount at yesterday’s close. That HZNP hasn’t sunk to a 25% or greater discount shows that many investors still expect this deal to go through.

HZNP’s most recent “unaffected” share price was the $78.76 close on 11/29/22 (#msg-170671017), so the stock is still trading at a 21% premium to the unaffected share price, versus the 48% premium in AMGN’s buyout price.