Investors of Checkmate Pharmaceuticals (NASDAQ: CMPI) woke up to a welcomed share price premium of around 333% today, jumping from consolidation around the $3 mark to today’s opening price of $10.30. Investors should expect some volatility throughout the rest of the trading week as profit takers step in.
The soaring price is a result from an agreed acquisition from Regeneron Pharmaceuticals (NASDAQ: REGN); a clinical stage biopharmaceutical company focusing on combating cancer by harnessing the power of the immune system. The agreement went through as an all-cash transaction at a price of $10.50 per share of Checkmate’s common stock, amounting to a total value of $250M.
Regeneron are making promising headway in critical cancer research, and it was Checkmate’s leading candidate ‘vidutolimod’ that drew the attention of Regeneron, a Toll-like receptor 9 (TLR9) agonist delivered in a virus-like particle. It works through administration into the tumor, where it supposedly induces and expands anti-tumor T cells and induces tumor regression as a monotherapy in patients whose tumors previously progressed on PD-1 checkpoint inhibition. Despite its current appeal, Vidutolimod is yet to receive approval from the FDA.
The tactical acquisition will mean that Checkmate’s novel treatment should reach its full potential with the strong research capacity, levels of expertise and deep resources of Regeneron, providing the next steps for Vidutolimod as a platform for immunotherapy.
Alan Bash, President and CEO of Checkmate commented:
“We are thrilled that Checkmate will become part of Regeneron, a biotechnology leader that shares our deep appreciation for science, hunger for ground-breaking discoveries and commitment to helping patients defeat cancer”
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Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.