Markets

Here's Why Dyax Corp.'s Shares Jumped Today

DYAX Chart

What : Shares of Dyax Corp. gained more than 12% this Thursday morning on heavy volume. The jump was triggered by the U.S. Federal Trade Commission reportedly terminating the antitrust waiting period for the company's acquisition by Irish biopharma Shire , allowing the two companies to proceed with their plans to merge in the first half of 2016. Per the announcement last month, Shire is offering $5.9 billion, or $37.30 per share, for Dyax.

So what : If Dyax's experimental treatment for hereditary angioedema, DX-2930, gains regulatory approval, this buyout agreement also includes acontingent value right worth around $4.00 a share to Dyax's shareholders. So, if everything goes according to plan, Dyax's long-term shareholders may end up booking a gain in excess of 175% from the start of 2015, according to data from S&P Capital IQ :

DYAX data by YCharts .

Now what : After completing an impressive early-stage study for DX-2930 that reported its top-line results last March, Dyax announced that it plans on pushing the drug directly into a pivotal late-stage study. Therefore, Shire and Dyax believe the drug could be on the market by 2018. Given that analysts think DX-2930 could generate sales of $600 million by as early as 2019 and Shire has its peak sales pegged at over $2 billion, this acquisition seems to have all the hallmarks of a major win for Shire moving forward. On the flip side of the coin, if DX-2930 ultimately flames out in late-stage testing, this deal probably won't create much value for Shire's shareholders at the end of the day. So, this is one clinical-stage product that shareholders will certainly want to keep a close eye on going forward.

This iSecret stock could make this pop look tiny

The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The article Here's Why Dyax Corp.'s Shares Jumped Today originally appeared on Fool.com.

George Budwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More