Eidos Therapeutics Inc (Nasdaq: EIDX) is surging today, up 34.2% at $69.67 at last check, after announcing a merger with BridgeBio Pharma Inc (BBIO). More specifically, BridgeBio is set to buy Eidos Therapeutics in a cash-and-stock deal of about $2.8 billion. Shareholders of Eidos will have the option to either 1.85 shares of BBIO or to cash out at $73.26 per share up to $175 million -- a 41.1% premium to Friday's close.
BridgeBio Pharma is set to buy Eidos Therapeutics in a cash-and-stock deal
Ahead of the news, EIDX was down 9.5% year-to-date and hanging out at familiar pressure at the $53-$54 region. Now, the equity is surpassing its record Dec. 16 high of $66.55.
Analysts were split on Eidos stock coming into today, with three in coverage at a "strong-buy," three at a "hold," and one sporting a "strong sell." Meanwhile, the 12-month consensus price target of $59.38 is a 14.4% premium to Friday's close.
Meanwhile, the 1.89 million shares sold short account for 15.1% of the stock's available float. In other words, it would take over 27 days to cover these bearish bets at EIDX's average pace of trading.
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