Why Constellation Pharmaceuticals Stock Was Crushing It This Week
The stock of Constellation Pharmaceuticals (NASDAQ: CNST) was absolutely crushing it this week, up 70.6% as of the market close on Thursday. The catalyst behind this impressive performance was the announcement on Wednesday that German drugmaker MorphoSys (NASDAQ: MOR) plans to acquire Constellation for $1.7 billion.
MorphoSys' cash offer of $34 per share for Constellation represented a premium of nearly 72% over the closing price for the biotech stock at the end of last week. Why was MorphoSys willing to pay up so much? It really wanted Constellation's pipeline programs. MorphoSys CEO Jean-Paul Kress stated, "This transformational acquisition represents a major step forward for MorphoSys as we bolster our position in hematology-oncology."
Image source: Getty Images.
Source Fool.com
