Shares of Eidos Therapeutics, Inc. (NASDAQ: EIDX) rocketed Monday as the biotechnology company has announced that BridgeBio Pharma, Inc. (NASDAQ: BBIO) has decided to buy all of the outstanding common stock of Eido. BridgeBio Pharma has already owned the major stake in Eidos and is now planning to buy the remaining stake of the company including approximately 36.3% of Eidos’ outstanding shares.
BridgeBio Pharma is planning to buy Eidos for a 41% premium above the closing price of the biotech stock on Oct. 2, 2020. The deal between Eidos and BrdigeBio Pharma has given the choices to the shareholders of Eidos. As per the choices, stakeholders can either get 1.85 shares of BridgeBio stock or $73.26 in cash for every share of Eidos they own. The decision has been approved unanimously by both the companies boards of directors.
Neil Kumar, Ph.D., founder, and CEO of BridgeBio and CEO of Eidos said that this deal has removed the operational complexity of the current ownership structure. He believed that this is a good deal as Eidos is preparing for a global launch of acoramidis which is used for the treatment of rare genetic diseases transthyretin amyloidosis (ATTR) cardiomyopathy and polyneuropathy.
Eidos Therapeutics, Inc. (NASDAQ: EIDX) shares were trading up 41.58% as it gained +21.59 at $73.51 on Monday. Eidos Therapeutics, Inc. share price went from a low point around $28.39 to briefly over $66.56 in past 52 weeks. EIDX market cap has remained high, hitting $2.84 billion at the time of writing. It has moved up 158.93% and 10.44% from its 52-weeks low and high, respectively. Looking at its liquidity, it has a current ratio of 11.60.
WeissLaw LLP has announced that it has started the investigation against the board of directors of Eidos Therapeutics for the possible breaches of fiduciary duty and other violations. Rigrodsky & Long, P.A. and the Law Office of Brodsky & Smith, LLC also started an investigation regarding possible breaches of fiduciary duties and other violations of law related to Eidos’ agreement to be acquired by BridgeBio Pharma, Inc.