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      Fortress Biotech, Inc. (FBIO) Stock Surging in Premarket - Stocks Telegraph

      By Hassan Masood

      Published on

      September 29, 2021

      12:53 PM UTC

      Last Updated on

      June 19, 2023

      12:35 PM UTC

      Fortress Biotech, Inc. (FBIO) Stock Surging in Premarket - Stocks Telegraph

      Fortress Biotech, Inc. (FBIO), a biopharmaceutical company, has seen a surge of 13.53% in the premarket trading session. Consequently, FBIO stock is changing hands at $3.86 at the time of this writing. The surge has come after the company announced today the receipt of the Notice of option exercise from Astra Zeneca. The surge has come after the stock declined some 3.95% in regular hours of Tuesday.

      Acquisition of Caelum by Astra Zeneca

      FBIO and Caelum Biosciences, Inc., a clinical-stage biotechnology company founded by Fortress, announced today that Astra Zeneca Alexion notified the Caelum that it has exercised its option to acquire Caelum under development, option and stock purchase agreement in place between Fortress, Caelum, Alexion. Also, the waiting period under the HSR Antitrust Improvements Act of 1976 had expired in connection with such an acquisition. The expiration of the waiting period under the act satisfied one of the conditions required for the consummation of the acquisition. Under the agreement, Alexion will purchase all of the outstanding shares of Caelum and will pay Caelum the agreed option exercise price of approximately $150 million upon closing of the acquisition, which is expected to take place on 5th October 2021. Fortress could obtain 43% of the proceeds from the transaction. Lindsay A. Rosenwald, M.D., Fortress’ Chairman, President and Chief Executive Officer, commented on the development that acquisition of Caelum as a positive development and monetization opportunity for FBIO shareholders.

      FBIO Q2 2021 financial results

      On 16th August, FBIO reported the quarterly results for the second quarter of the fiscal year 2021, which ended 30th June. According to the details, the company had cash and cash equivalents of $129.92 million on the 30th of June. The total assets at the end of the quarter stood at $143.20 million while total liabilities were $8.18 million. The operating expenses bore by the company during period stood at $14.44 million, while during equivalent period of 2020; the total operating expenses were hovering around $14.12 million. The net loss suffered by the company during the period stood at $14.35 million, while during the equivalent period of 2020, the net loss suffered by the company was $14.59 million. The net loss per basic and diluted share for the quarter stood at $0.16, while for an equivalent period of 2020, the net loss per basic and diluted share was $0.32.

      What future holds in store for FBIO?

      Statistics reveal a positive picture of FBIO stock. During the last week, the stock has increased by 7%. Analysts estimate that the EPS of FBIO stock could increase by a massive 131% during the next fiscal year. So, long term investors should keep a close watch on FBIO stock to reap benefits in future. 

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