Eli Lilly Acquires Point Biopharma; Alx Oncology, HP, and Oddity Tech Experience Gains

On Tuesday, Point Biopharma experienced a notable spike in its premarket trading, with shares soaring following an announcement from Eli Lilly & Co. about its plan to acquire the cancer biotech for approximately $1.4 billion. This acquisition is aimed at enhancing Eli Lilly’s oncology offerings by incorporating radioligand treatments, which effectively deliver radiation directly to tumor cells.

Following the news, Point Biopharma’s stock surged by 84.7%, reaching $12.35 and potentially hitting its highest value in over two years, assuming the gains are sustained. The all-cash transaction, valued at $1.4 billion, allows Eli Lilly access to Point Biopharma’s innovative radioligand therapies, which are designed to precisely target cancer cells by combining radioactive particles that destroy cells with molecules that bind to tumors.

Eli Lilly’s offer stands at $12.50 per share of Point Biopharma, marking a premium of around 87% over the stock’s last closing price. The two companies anticipate finalizing the agreement by the end of 2023. As of now, Point Biopharma’s stock has risen roughly 69.4% since the beginning of the year.

In other premarket trading developments on Tuesday, shares of ALX Oncology also rose sharply after releasing promising interim mid-stage data from a trial of its drug for treating advanced gastric cancer.

Conversely, McCormick’s stock declined due to lower-than-expected net sales for the recent quarter, alongside a more significant drop in product volume, attributed in part to waning demand in its Asia-Pacific markets.

Airbnb shares fell as analysts downgraded their rating on the short-term rental company, highlighting a decrease in travel activity post-pandemic.

In contrast, shares of Warner Music Group increased following an upgrade from UBS analysts, who raised the entertainment firm’s rating from neutral to buy. Similarly, HP stock gained after an upgrade from Bank of America analysts, who changed their rating from underperform to buy.

Oddity Tech Ltd. also saw an increase in its shares, following a rating improvement from Truist Securities, which moved its rating to buy from hold, citing a strong valuation for the beauty and wellness platform.