Why Immunovant Stock Is Soaring Today
Shares of clinical-stage biopharmaceutical company Immunovant (NASDAQ: IMVT) are on fire on Monday. As of 12:20 p.m. EST, the drugmaker's stock was up by 11.7%, after rising by as much as 44% earlier in the day. Immunovant did not report any news, but its majority stakeholder, Roivant Sciences, announced that it would offer to buy out the remaining shares of Immunovant it does not already own.
Roivant Sciences is a privately owned biopharmaceutical company that currently owns 57.5% of the outstanding shares of Immunovant. In a Securities and Exchange Commission (SEC) filing submitted today, Roivant expressed the desire to buy out the 42.5% stake in Immunovant it currently does not own. Roivant did not say how much the proposed transaction would be worth.
But the company did mention that its offer would represent a premium over Immunovant's current stock price. That explains why investors are bidding up Immunovant's shares today. However, there is still a lot we don't know about this potential deal: when it will be officially announced (that is, if it is approved at all) and how generous Roivant's offer will be.
Source Fool.com
