Shares of ChemoCentryx, Inc. (NASDAQ:CCXI) are skyrocketing Thursday following a groundbreaking announcement for the biopharmaceutical company.
Why Is It Moving?
A ChemoCentryx AMGN) has acquired the company in an all-cash deal.
The $3.7-billion acquisition has a value of $52 per share, which is causing the stock price to explode. When the market closed Wednesday afternoon, the stock was priced at $24.11 and the stock has moved to $50.42 amid the announcement.
The acquisition’s main goal is to help with distribution of ChemoCentryx’s TAVNEOS drug. It is an orally administered drug that helps adult patients with severe active ANCA-associated vasculitis. It was approved by the FDA in October 2021 and this new deal will allow the drug to be distributed on a mass scale.
Amgen CEO and Chairman Robert A. Broadway shared, "We are excited to join in the TAVNEOS launch and help many more patients with this serious and sometimes life-threatening disease for which there remains significant unmet medical need. We also look forward to welcoming the highly skilled team from ChemoCentryx that shares our passion for serving patients suffering from serious diseases."
ChemoCentryx has been working on the drug for 25 years, and this M&A marks the end of that journey.
CEO and President Thomas J. Schall shared, "Last year, after 25 years of proud history, we at CCXI delivered on our founding promise with the approval of TAVNEOS for patients with anti-neutrophil cytoplasmic autoantibody-associated vasculitis (ANCA-associated vasculitis). It is an honor to now join Amgen's great mission, and together begin a bright new era bringing landscape-shaping medicines like TAVNEOS to those who will benefit most."
CCXI Price Action: Shares are up 108.92% at $50.37 midday Thursday, according to Benzinga Pro.