VectivBio Holding AG VECT shares are trading higher Monday after GI-focused healthcare company Ironwood Pharmaceuticals Inc IRWD agreed to acquire VectivBio.
What Happened: VectivBio and Ironwood entered into a definitive agreement in which Ironwood will acquire VectivBio for $17 per share in an all-cash transaction. The deal has an estimated aggregate consideration of approximately $1 billion.
"We are delighted to enter into this agreement with Ironwood to advance the development and commercialization of innovative therapies targeted at GI and rare diseases, which is the mission of VectivBio," said Luca Santarelli, founder and CEO of VectivBio.
Ironwood is focused on VectivBio's lead investigational asset apraglutide, which it believes can potentially help advance the treatment of GI diseases and redefine the standard of care for GI patients.
The transaction has been approved by both companies' boards and is expected to close in the second half of the year.
See Also: Greenhill & Co Stock Is Hitting New 52-Week Highs: What's Driving The Action?
VECT Price Action: VectivBio shares were up 36.1% at $16.20 at the time of publication, according to Benzinga Pro.
Photo: Lorenzo Cafaro from Pixabay.
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