Eidos Therapeutics (EIDX) - Get Report shares rose sharply Monday after a report came out that the biopharmaceutical company received a takeover offer from drug giant GlaxoSmithKline (GSK) - Get Report in November.
BridgeBio wrote in a filing Friday that a “large international pharmaceutical company” had bid $120 per share in an all-cash, non-binding deal for Eidos in late November. Such a transaction would value Eidos at $4.6 billion, and the company later suggested it would raise the bid, Bloomberg reports.
Bloomberg's sources said the pursuing company is Glaxo. BridgeBio owns more than 60% of Eidos, according to Bloomberg. BridgeBio agreed in October to purchase the remainder, offering holders either 1.85 BridgeBio shares or $73.26 per share in cash.
Eidos recently traded at $113.80, up 6.86%; BridgeBio at $61.36, up 0.02%; and Glaxo at $37.70, up 0.29%
Morningstar analyst Damien Conover offered positive commentary on Glaxo after its third-quarter earnings report in October. “We continue to view the stock as undervalued with the market not likely fully appreciating the firm’s marketed portfolio, especially in vaccines, an area that provides extra support to the firm’s wide moat,” he wrote.
Conover puts fair value for Glaxo at $45.
“Glaxo remains on track to divest the consumer business in 2022, which holds the potential to unlock value based on relatively higher consumer healthcare valuations. The divestiture could put pressure on the overall dividend, but we still see the total dividend as more likely than not to be maintained,” Conover said.