Hepatitis C Stocks Move After Idenix Rockets Up 235%
Hepatitis C stocks are heating up Monday morning after Merck (NYSE: MRK) announced a 239 percent premium on Idenix Pharmaceuticals (NASDAQ: IDIX). Shares of Idenix are trading up 235 percent in the pre-market, just $0.24 away from Merck’s offer.
Merck shares were trading down 0.67 percent to $57.46. This weakness indicates some shareholders may think Merck is overpaying for Idenix because the deal will not dilute Merck shares.
The extremity of the offer completely changes hepatitis C industry valuation. New valuations are reflected in Monday mornings trading. Achillion Pharmaceuticals (NASDAQ: ACHN) shares are up ~35 percent and Enanta Pharmaceuticals (NASDAQ: ENTA) are up ~4.03 percent.
The massive premium Merck is paying for Idenix indicates that commercial viability is more likely than Wall Street had anticipated.
Subsequently, shares of competitors are experiencing some weakness in Monday morning's trading.
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