Why Pandion Therapeutics Stock Shot Up 133% Today

Pandion Therapeutics Inc PAND shares closed over 133% higher today.

What Happened: Pandion — a developer of novel therapeutics targeting autoimmune diseases — will be acquired by a subsidiary of drug multinational Merck & Co, Inc MRK, according to a statement issued Thursday.

Merck is purchasing Pandion for $60 per share in cash, which values the deal at nearly $1.85 billion.

“This acquisition builds upon Merck’s strategy to identify and secure candidates with differentiated and potentially foundational characteristics,” said Dean Y. Li, President Merck Research Laboratories.

Merck will through a tender offer acquire all outstanding shares of Pandion subject to conditions, including the purchase of a majority of the company.

The transaction is expected to be closed in the first half of 2021. 

Pandion Price Action: Pandion shares closed 133.36% higher at $59.81 on Wednesday and fell 0.43% in the after-hours trading.