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      A Big Jump In Rayzebio (RYZB) Stock Price This Morning

      By Fahim Awan

      Published on

      December 26, 2023

      6:11 PM UTC

      Last Updated on

      December 26, 2023

      6:18 PM UTC

      A Big Jump In Rayzebio (RYZB) Stock Price This Morning

      RayzeBio, Inc. (NASDAQ: RYZB) shares have exhibited a noteworthy surge, doubling in value on the US stock market today. As of the last check during the current trading session, RayzeBio’s stock has ascended by an impressive 100.85% to reach $61.40. This surge in RYZB stock is a direct outcome of a significant acquisition deal.

      Today, RayzeBio (RYZB) officially disclosed a definitive merger agreement with Bristol Myers Squibb. According to the terms, Bristol Myers Squibb will acquire RayzeBio at a per share price of $62.50 in cash. That translates to an overall valuation of approximately $4.1 billion, or $3.6 billion for RYZB after accounting for estimated cash assets.

      This tactical move is expected to further diversify Bristol Myers Squibb’s business into the cancer space by adding a unique platform and pipeline. This move strengthens the company’s growth prospects going forward, as well as in the later half of this decade and beyond. It is expected that RayzeBio’s innovative work in the field of radiopharmaceutical therapies, especially its use of actinium-based technology, would be crucial in revolutionizing cancer therapy.

      With the purchase of RayzeBio’s cutting-edge radiopharmaceutical technology, Bristol Myers Squibb will take a leading position in one of the most promising and quickly developing treatment modalities for solid tumors. This is delivering radioactive payloads to cancer cells precisely. Furthermore, RayzeBio’s platform has the potential to develop into a major IND engine in the future, producing a multitude of therapeutic candidates.

      By utilizing Bristol Myers Squibb’s vast worldwide drug development infrastructure and expertise, this promise will be realized. Bristol Myers Squibb plans to mostly depend on fresh debt issuance to finance this transaction. As per the terms of the merger agreement, the business will launch a tender offer right away to buy all of the outstanding shares of RayzeBio common stock for $62.50 per share in cash.

      The deal is expected to close in the first half of 2024, subject to normal closing conditions, which include the tendering of the majority of outstanding shares of RayzeBio’s common stock and the expiration or termination of the waiting period.

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