Prometheus Biosciences hits record high after Merck's $11 bln buyout

Prometheus Biosciences

17/04/2023 15:48

(Updates)
    ** Shares of drug developer Prometheus Biosciences Inc
 RXDX.O  hit a record high; stock last up 69.3% at $192.98
    ** Merck & Co Inc  MRK.N  said on Sunday it would buy RXDX
for about $10.8 bln, as the drugmaker builds up its presence in
the market for therapies targeting disease of the immune system
    ** MRK to pay $200/shr, a 75% premium to Prometheus' last
closing price
    ** Through the deal, MRK gains access to RXDX's experimental
drug PRA023, which is being tested to treat ulcerative colitis
and Crohn's disease
    ** About 5.5 mln shares change hands, more than 10 times the
stock's monthly average trading volume
    ** MRK shares down 0.2% at $115.05
    ** RXDX stock up 75.28% YTD

 (Reporting by Rupali Chaudhary in Bengaluru)
 ((Rupali.chaudhary@thomsonreuters.com))