March 4, 2019 9:28am
NITE shares were up 67.5% to $25.39
After BIIB dumps Applied Genetic Technologies (AGTC) collaboration for its competitor
Nightstar makes gene therapy treatments for choroideremia, a rare, inherited eye disease that leads to blindness.
Trading volume in Nightstar spiked to over 570,000 shares, compared with the full-day average of about 71,300 shares. Under terms of the deal, U.K.-based Nightstar shareholders will receive $25.50 for each Nightstar share they own, which represents a 68% premium to Friday's closing price of $15.16. The deal is expected to become effective by mid-year 2019.
Nightstar shares have climbed 15.7% over the past 12 months, while the iShares Nasdaq Biotechnology ETF has gained 5.0% and the S&P 500 has advanced 4.2%.
"Our agreement with Biogen will give us the platform and resources to expand our mission to maintain and restore sight in patients with inherited retinal diseases," said Nightstar CEO David Fellows. "This transaction accelerates treatment to patients through NITE's key retinal gene therapy programs that modify or halt progression of blindness."