Pandion Therapeutics soars 132% after Merck agrees to buy the biotech for $1.85 billion

Kenneth C. Frazier
Merck & Co. CEO Kenneth C. Frazier

  • Pandion Therapeutics soared 132% on Thursday after Merck agreed to acquire the biotech firm for $1.85 billion.
  • Merck will initiate a tender offer through a subsidiary to acquire all outstanding shares of Pandion for $60 per share.
  • Pandion develops therapeutics targeting patients living with autoimmune diseases.
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Merck sparked a 132% surge in Pandion Therapeutics on Thursday after the pharmaceutical giant agreed to acquire the biotech firm for $1.85 billion.

Pandion is a clinical-stage biotechnology company that is developing therapeutics for patients living with autoimmune diseases. Pandion’s lead candidate, PT101, completed a Phase 1a trial earlier this year and is a potential treatment for ulcerative colitis.

Merck will initiate a tender offer through a subsidiary to acquire all outstanding shares of Pandion for $60 per share. Shares of Pandion closed at $25.63 on Wednesday. The completion of the acquisition will require at least a majority of Pandion shareholders tendering their shares to Merck. 

“Pandion has applied its TALON technology to develop a robust pipeline of candidates designed to re-balance the immune response with potential applications across a wide array of autoimmune diseases,” said Dr. Dean Y. Li, president of Merck Research Laboratories. 

The transaction is expected to close in the first half of 2021. 

Read the original article on Business Insider