Lilly to buy Armo Biosciences for $1.6 billion to bolster cancer pipeline

  • Lilly to buy Armo Biosciences for $1.6 billion to bolster cancer pipeline

Lilly to buy Armo Biosciences for $1.6 billion to bolster cancer pipeline

HC Wainwright reaffirmed a "buy" rating on shares of Eli Lilly and in a report on Wednesday, April 18th.

Eli Lilly and Company (LLY) has so far tried and showed success to beat the consensus-estimated $1.13, with their earning staying at $1.34 per share. (FPRX) stock moved with shift of 0.17% in the past week. 518 are owned by Atwood And Palmer. Putnam Fl Investment Mngmt Company holds 0.25% or 32,046 shares in its portfolio.

Lilly's drugs already in the market include top-selling lung cancer drug Alimta, Cyramza for certain types of cancers of the digestive tract and breast cancer drug Verzenio, among others. Eli Lilly and's payout ratio is 52.57%.

On his part, ARMO BioSciences President and Chief Executive Officer Peter Van Vlasselaer released the following statement: "ARMO is proud of the work we have done to advance the study of immunotherapies and of the development of Pegilodecakin to-date".

Last month, Lilly, which expressed interest in immuno-oncology deals, appointed the director of Thoracic Medical Oncology at New York University's School of Medicine to lead its medical development in this area. In the last ninety days, insiders have sold 221,472 shares of company stock worth $17,852,415. The firm owned 1,575,605 shares of the company's stock after selling 44,768 shares during the period. The insider Smiley Joshua L sold $237,600. Bank of Montreal Can increased its holdings in shares of Eli Lilly and by 85.4% in the fourth quarter. Alexandria Capital Llc bought 54,665 shares as the company's stock declined 11.06% with the market.

TETRA Technologies, Inc., (NYSE: TTI) make a change of 6.06 percent with the overall traded volume of 1706844 shares as compare to its average volume of 882.83K shares. That brings the total acquisition value to approximately $1.6 billion. The $50-per-share offer, coming just months after Armo's upsized January IPO, represents a 68 percent premium to Wednesday's close. About 3.72M shares traded. Eli Lilly and Company (NYSE:LLY) has declined 10.19% since May 10, 2017 and is downtrending. It has underperformed by 11.55% the S&P500.

The titles are as follows: "Why Spotify Technology, CenturyLink, and ARMO BioSciences Jumped Today" posted on May 10, 2018, "ARMO BioSciences Announces Poster Presentations of Pegilodecakin (AM0010) at the 2018 American Society of ..." on April 25, 2018, "Benzinga's Daily Biotech Pulse: ARMO Skyrockets On Eli Lilly Deal, Akcea Meets FDA Panel, vTv Alzheimer's Trial ..." with a publish date: May 10, 2018, "ARMO BioSciences Alert: Johnson Fistel Investigates Proposed Sale of ARMO BioSciences, Inc.; Is $50 a Fair Price?" and the last "ALERT: Rowley Law PLLC is Investigating Proposed Acquisition of ARMO BioSciences, Inc." with publication date: May 10, 2018. The company reported $1.34 earnings per share for the quarter, topping the Zacks' consensus estimate of $1.13 by $0.21.

Among 22 analysts covering Eli Lilly and Company (NYSE:LLY), 13 have Buy rating, 1 Sell and 8 Hold. Therefore 40% are positive. (NASDAQ:ARMO) rating on Tuesday, February 20. Janus Henderson Group PLC now owns 10,857,193 shares of the company's stock valued at $928,719,000 after acquiring an additional 1,503,918 shares in the last quarter. The company was upgraded on Tuesday, March 27 by Leerink Swann. Jefferies has "Buy" rating and $61.0 target. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have issued a buy rating to the company. The rating was maintained by Credit Suisse with "Hold" on Wednesday, December 13.

Eli Lilly notes that once the tender offer is complete, it plans to acquire all non-tendered ARMO shares through a second-step merger.