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Significant premiums over stock market prices in biotechnology acquisitions

By Jeremy Webster, Chris Yatscoff and David Smythe


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Significant premiums over stock market prices in biotechnology acquisitions

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In the past few months there have been several acquisitions of biotechnology companies at significant premiums to their stock market prices.  Several companies have been purchased at over two to three times its pre-announcement stock market price.

The purpose of this article is to examine this issue to see if these are isolated events or more of a trend.  We will also seek to explain why this may be occurring from the perspective of various stakeholders including biotechnology executives, pharmaceutical executives, board members, investment bankers, analysts and other industry representatives to identify reasons why these premiums are being paid.

For more information, please contact:

Jeremy Webster
Senior Vice President
780-915-0183
jeremywebster@deloitte.ca

Chris Yatscoff
Manager, Corporate Finance Advisory
780-421-3647
cyatscoff@deloitte.ca

David Smythe
Senior Analyst, Corporate Finance Advisory
780-421-3772
dsmythe@deloitte.ca

Questions? Need more information?

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Relevant industries

Manufacturing
Life sciences

Relevant services

Financial advisory