Ventyx Biosciences (VTYX) Stock: Eli Lilly Acquisition Talks Send Shares Soaring 62%

TLDR

• Ventyx Biosciences (VTYX) stock jumped 62.5% in after-hours trading following reports that Eli Lilly is in advanced talks to acquire the company for over $1 billion
• The potential deal would value Ventyx at approximately double its Tuesday market cap of just over $500 million, with an announcement possible soon
• Ventyx develops oral therapies for inflammatory diseases like Crohn’s disease and rheumatoid arthritis, with one candidate in mid-stage trials for obesity-related cardiovascular disease
• The acquisition would expand Eli Lilly’s portfolio in autoimmune diseases and obesity treatments, competing with other pharma giants like Roche and Novo Nordisk in the NLRP3 space
• VTYX shares have surged 315% over the past 12 months and trading was temporarily halted due to volatility from the acquisition news

Ventyx Biosciences stock exploded in after-hours trading Tuesday, climbing 62.5% to $16.34. The surge came after reports surfaced that Eli Lilly is in advanced discussions to acquire the biotech company.

Ventyx Biosciences, Inc., VTYX

The Wall Street Journal broke the news, citing sources familiar with the matter. According to the report, a deal could be announced imminently.

The potential acquisition would value Ventyx at more than $1 billion. That’s roughly double the company’s Tuesday market capitalization of just over $500 million.

Trading was temporarily halted during regular hours due to volatility. The stock had already gained 28.52% during the day, closing at $10.05.

Neither Ventyx nor Eli Lilly responded to requests for comment on the acquisition talks.

Ventyx, based in San Diego, operates as a clinical-stage biotechnology company. The firm develops oral pill treatments for inflammatory diseases.

Its pipeline includes therapies targeting conditions like Crohn’s disease and rheumatoid arthritis. One drug candidate is currently in mid-stage clinical trials for cardiovascular disease linked to obesity.

Treatment Focus and Market Position

The company’s work centers on NLRP3, a protein complex involved in the body’s inflammatory response. This category has attracted attention from major pharmaceutical companies.

Jefferies analysts note that drugmakers including Roche Holding and Novo Nordisk have expressed interest in the NLRP3 space. An acquisition would add these capabilities to Eli Lilly’s existing portfolio.

For Eli Lilly, the deal would expand its presence in autoimmune diseases and obesity treatments. The pharmaceutical giant currently holds a market value of approximately $1 trillion.

Stock Performance and Trading Data

Ventyx shares have shown strong momentum over the past year. The stock has climbed 315% over the last 12 months.

The company’s market capitalization now stands at about $717.2 million following the after-hours price movement. Its 52-week trading range spans from $0.78 to $25.00.

The current price sits about 38% of the way from its 52-week low to its high. This suggests the stock is trading closer to the lower end of its annual range despite recent gains.

The Relative Strength Index for Ventyx reads 60.68. This technical indicator measures recent price momentum.

Deal Timeline and Next Steps

Sources told The Wall Street Journal that negotiations between the two companies are advanced. The timeline suggests an announcement could come very soon.

The $1 billion-plus valuation represents a premium of roughly 100% over Ventyx’s pre-news market value. This type of premium is common in biotech acquisitions where buyers pay for pipeline potential.

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