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Akouos (AKUS) Surges on $610M Buyout Deal With Eli Lilly
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Shares of Akouos skyrocketed 88.16% after the company announced a buyout agreement for approximately $610 million with pharma giant Eli Lilly (LLY - Free Report) . The stock has rallied 55.1% in the year-to-date period against the industry’s decline of 24.2%.
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Per the terms of the definitive agreement, Lilly will acquire all outstanding shares of Akouos for an equity value of $487 million, or $12.50 per share, in cash, and one contingent value right (CVR) up to $3.00 per share. The offer price of $12.50 represents a premium of 78% of Akouos’s closing price on Oct 17.
The acquisition, approved by the board of directors of the companies, is expected to close in the fourth quarter of 2022 and is subject to other customary closing conditions.
For Lilly, the acquisition is expected to strengthen its gene therapy profile by adding Akouos’s pre-clinical pipeline of gene therapies to treat monogenic inner ear conditions.
Shares of Lilly have rallied 22.6% in the year against the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Akouos’s portfolio includes its lead product candidate, AK-OTOF, which recently received an FDA clearance for its investigational new drug (IND) application. The company will soon initiate a phase I/II, first-in-human, pediatric study for treating patients with otoferlin gene (OTOF)-mediated hearing loss. Currently, no approved treatment options exist for patients with OTOF-mediated hearing loss.
The company also has additional product candidates in its portfolio, including AK-CLRN1 for Usher Type 3A, an autosomal recessive disorder characterized by progressive loss of hearing and vision, GJB2 for a common form of monogenic deafness and hearing loss and AK-antiVEGF for treating vestibular schwannoma.
Acadia’s loss per share estimates for 2022 have narrowed down from $1.30 to $1.29 in the past 30 days. The loss per share for 2023 has also narrowed down from 67 cents to 60 cents in the same time frame.
Earnings of Acadia beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions. The average negative earnings surprise for ACAD is 6.83%.
BioMarin’s earnings per share estimates for 2022 are down by a cent at $1.98 in the past 30 days. The same for 2023 has improved by a cent from $3.80 to $3.81 in the same time frame.
Earnings of BioMarin beat estimates in all of the trailing four quarters. The average earnings surprise for BMRN is 98.90%.
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Akouos (AKUS) Surges on $610M Buyout Deal With Eli Lilly
Shares of Akouos skyrocketed 88.16% after the company announced a buyout agreement for approximately $610 million with pharma giant Eli Lilly (LLY - Free Report) . The stock has rallied 55.1% in the year-to-date period against the industry’s decline of 24.2%.
Image Source: Zacks Investment Research
Per the terms of the definitive agreement, Lilly will acquire all outstanding shares of Akouos for an equity value of $487 million, or $12.50 per share, in cash, and one contingent value right (CVR) up to $3.00 per share. The offer price of $12.50 represents a premium of 78% of Akouos’s closing price on Oct 17.
The acquisition, approved by the board of directors of the companies, is expected to close in the fourth quarter of 2022 and is subject to other customary closing conditions.
For Lilly, the acquisition is expected to strengthen its gene therapy profile by adding Akouos’s pre-clinical pipeline of gene therapies to treat monogenic inner ear conditions.
Shares of Lilly have rallied 22.6% in the year against the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Akouos’s portfolio includes its lead product candidate, AK-OTOF, which recently received an FDA clearance for its investigational new drug (IND) application. The company will soon initiate a phase I/II, first-in-human, pediatric study for treating patients with otoferlin gene (OTOF)-mediated hearing loss. Currently, no approved treatment options exist for patients with OTOF-mediated hearing loss.
The company also has additional product candidates in its portfolio, including AK-CLRN1 for Usher Type 3A, an autosomal recessive disorder characterized by progressive loss of hearing and vision, GJB2 for a common form of monogenic deafness and hearing loss and AK-antiVEGF for treating vestibular schwannoma.
Akouos, Inc. Price
Akouos, Inc. price | Akouos, Inc. Quote
Zacks Rank and Key Picks
Akouos and Lilly both carry a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the same sector are ACADIA Pharmaceuticals (ACAD - Free Report) and BioMarin Pharmaceuticals (BMRN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Acadia’s loss per share estimates for 2022 have narrowed down from $1.30 to $1.29 in the past 30 days. The loss per share for 2023 has also narrowed down from 67 cents to 60 cents in the same time frame.
Earnings of Acadia beat estimates in two of the trailing four quarters, while missing the same on the remaining two occasions. The average negative earnings surprise for ACAD is 6.83%.
BioMarin’s earnings per share estimates for 2022 are down by a cent at $1.98 in the past 30 days. The same for 2023 has improved by a cent from $3.80 to $3.81 in the same time frame.
Earnings of BioMarin beat estimates in all of the trailing four quarters. The average earnings surprise for BMRN is 98.90%.