Baxalta Inc. (NYSE: BXLT)
BXLT News & Technicals
Monday morning before the market opened, Shire PLC (SHPG) agreed to buy Baxalta Inc. (BXLT) for $32 billion which has sent shares up in the premarket by over 5%. The deal includes Shire paying $18 cash and 0.1482 of its ADR per share of BXLT. “This proposed combination allows us to realize our vision of building the leading biotechnology company focused on rare diseases,” Shire Chief Executive Flemming Ornskov said in a statement. (MarketWatch)
Shares hit premarket highs of $42.85 before pulling back and consolidating around the $42 level. We should see some support come in at around the $41.65 and $41.60 while resistance will be met at the premarket highs of $42.85. Shares of BXLT IPO’d back in June at a price of $34.00, so this deal represents a roughly 24% increase in value in just 7 months of trading public. As far as trading this is concerned, I will be watching this one from the sidelines as buy outs usually price in the value of the deal and will trade around that price leaving little movement that day traders need.
Baxalta Inc. Profile
Baxalta, Inc. engages in the research, development, and manufacture of biopharmaceutical products. Its portfolio includes treatments for hemophilia, bleeding disorders, immune deficiencies, alpha-1 antitrypsin deficiency, burns, and shock. The company was founded on September 8, 2014 and is headquartered in Deerfield, IL. (MarketWatch)
