Sigilon jumps on Eli Lilly's buyout deal to expand diabetes treatments

Sigilon Therapeutics

29/06/2023 16:54

(Updates)
    ** Shares of cell therapy developer Sigilon Therapeutics Inc
 SGTX.O  jump ~524% to $24.40
    ** Stock top pct. gainer across U.S. stock exchanges
    ** Eli Lilly and Company  LLY.N  said it will acquire all
shares of SGTX that it did not own
        ** Lilly owned nearly 8.44% stake in Sigilon as of March
27; LLY would pay $14.92/share, or $34.6 mln in upfront cash,
for the rest of the company
  
        ** LLY, a major provider of diabetes drugs and insulin,
with the deal would gain access to SGTX's proprietary cell
therapy candidate being developed to treat type 1 diabetes  
  
    ** Sigilon shareholders will get an additional $111.64/share
if they achieve certain developmental and regulatory milestones,
Lilly said 
        ** LLY shares up 1.5% at ~$465
  
        ** SGTX shares soared more than eightfold to $34.48 in
premarket trading after deal announcement vs its Wednesday's
close of $3.93
  
    ** The deal is expected to close in Q3 2023
    ** Including session's gain, SGTX stock up ~436% YTD

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))