Hepatitis C Stocks Move After Idenix Up 235%

Hepatitis C stocks are heating up Monday morning after Merck MRK announced a 239 percent premium on Idenix Pharmaceuticals IDIX. Shares of Idenix are trading up 236 percent in the premarket, just $0.24 away from Merck’s offer.

At last check Merck shares were trading down 0.78 percent to $57.40. This weakness indicates some shareholders think Merck is overpaying for Idenix because the deal will not dilute Merck shares.

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The extremity of the offer completely changes hepatitis C industry valuation. New valuations are reflected in Monday mornings trading. Achillion Pharmaceuticals ACHN shares are up 40.62 percent and Enanta Pharmaceuticals 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 mornings trading. Gilead Sciences GILD shares are down 1.83 percent. AbbVie ABBV shares are down 0.18 percent, AbbVie started a Phase III study of its hepatitis C drug at the end of 2012.