LogicBio’s stock skyrockets after buyout bid for a 667% premium

Shares of LogicBio Therapeutics Inc.
LOGC,
+644.44%
skyrocketed more than seven-fold (up 643%) in morning trading, to bounce off the previous session’s record low, after the genetic medicine company announced an agreement to be acquired by AstraZeneca PLC’s
AZN,
+0.42%
AZN,
-1.39%
Alexion, AstraZeneca Rare Disease in a deal that values LogicBio at about $68.23 million. The stock had closed Friday at a record low of 27 cents, representing a market capitalization for LogicBio of about $8.9 million. Under terms of the buyout deal, Alexion will launch a cash tender offer of $2.07 for each LogicBio share outstanding, representing a 666.7% premium to Friday’s closing price. “Through this acquisition, we strive to accelerate our research in gene editing and AAV [Adeno-associated viruses] capsid development and together move the field of genomic medicine forward,” said LogicBio Chief Executive Fred Chereau. Until Monday’s rally, LogicBio’s stock had traded below the $1 mark since Feb. 2, after the company said it a clinical trial of LB-001 in pediatric patients with methylmalonic acidemia (MMA) had been placed on hold by the Food and Drug Administration. The stock has still lost 12.6% year to date, while the S&P 500
SPX,
+1.88%
has shed 24.0%.