A deal with Danish firm Lundbeck is propelling the value of Alder Bio up quite a bit as the stock hit an 81% hike in pre-market trading this morning.
Lundbeck plans to acquire ALDR for $18 per share, in addition to a non-tradable contingent value right for two more dollars per share, depending on whether a migraine drug made by Alder gets approved by European regulators.
With a reported total value of €1.95 billion, the deal would be expected to close in the fourth quarter.
Nick Paul Taylor at FierceBiotech notes that the $18 value would represent a 79% premium over the company’s share price as of yesterday.
“The slide in Alder’s share price, from highs of $18 a year ago to recent lows of around $8, covers a period in which doubts about its ability to compete in a highly competitive field have intensified,” Taylor writes.
However, breaking news suggests there may be some controversy over the share price itself, as a PR newswire release shows shareholder rights legal firm Johnson Fistel is scrutinizing the deal with Lundbeck, stating:
“The investigation concerns whether the Alder board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Alder shares of common stock.”
Those covering the investigation cite an analyst price target of $36 per share.
In terms of chart history, ALDR was trading under $10 until a massive spike brought current value up near $20 this morning.
That’s towering over a six-month high of $14.31 in April and a 52-month high of $17.05 at this same time last year.
However, going back into 2017, we see values over $30 with a spike above $50 in June 2015.
It remains to be seen whether going back that far will yield the investigation ballast for suggesting that the share price was too low.
In the meantime, ALDR being above $18 right now could be a significant factor.
