
Dyax (DYAX) Stock Soars on $5.9 Billion Shire Deal
NEW YORK (TheStreet) -- Dyax Corp. (DYAX) stock is rising 33.31% to $36.70 in pre-market trading on Monday, after the biopharmaceutical company agreed to be acquired by Shire (SHPG) for $5.9 billion.
Shire stock is also gaining, up 0.21% to $227.52 this morning.
Shire will pay $37.30 in cash per share to acquire Dyax, which focuses on developing treatment for hereditary angioedema, a rare genetic disease.
"This highly complementary transaction aligns with and accelerates our strategy to build a global leading biotechnology company focused on rare diseases and specialty conditions," Shire CEO Flemming Ornskov said in a statement.
Dyax shareholders may also receive $4 in cash per share through a non-tradable contingent value right if the company's treatment DX-2930 is approved, adding $646 million to the offer.
The treatment will enter its third phase in clinical trials by the end of this year and could make up to $2 billion in annual sales if approved by regulators.
The transaction is pending shareholder and regulatory approval, but is expected to close in the first half of 2015.
Separately, TheStreet Ratings team rates DYAX CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate DYAX CORP (DYAX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DYAX's revenue growth has slightly outpaced the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 12.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, DYAX's share price has jumped by 135.60%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, DYAX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- DYAX CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, DYAX CORP continued to lose money by earning -$0.10 versus -$0.27 in the prior year. For the next year, the market is expecting a contraction of 170.0% in earnings (-$0.27 versus -$0.10).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 1333.9% when compared to the same quarter one year ago, falling from -$0.82 million to -$11.70 million.
- You can view the full analysis from the report here: DYAX








