Why Is Cancer-Focused NGM Biopharmaceuticals Stock Trading Lower On Monday?
Portfolio Pulse from Vandana Singh
NGM Biopharmaceuticals Inc (NASDAQ:NGM) is trading lower after The Column Group, its largest stockholder, agreed to acquire it for $1.55/share, an 80% premium over its last closing price before the acquisition announcement. This acquisition values NGM Bio at $135 million. NGM Bio's stock volume surged to 1.9 million, surpassing its average of 1.02 million. Despite recent challenges, including a significant workforce reduction and a failed Phase 2 trial, NGM Bio had previously reported encouraging data from a study in collaboration with Merck & Co Inc (NYSE:MRK).
February 26, 2024 | 6:15 pm
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POSITIVE IMPACT
Merck & Co Inc collaborated with NGM Biopharmaceuticals on a study evaluating NGM707 in combination with Merck's Keytruda, showing encouraging results in patients with multiple solid tumor indications.
The collaboration between NGM and Merck on the NGM707 and Keytruda study, showing encouraging results, could positively impact Merck's stock in the short term by highlighting its ongoing commitment to innovative cancer treatments.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
NGM Biopharmaceuticals is being acquired by The Column Group for $1.55/share, representing an 80% premium over its last closing price, with a total equity value of $135 million.
The acquisition announcement has led to a decrease in NGM's stock price, likely due to investor concerns over the premium paid and the future of the company post-acquisition. The significant volume increase indicates heightened investor interest and potential uncertainty.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100