Why is Oyster Point Pharma's (OYST) stock soaring today?

2 min read | November 07, 2022 07:41 AM PST | By Rupam Roy

Why is Oyster Point Pharma's (OYST) stock soaring today? — Image source: © Ganchaonan2518 | Megapixl.com

Oyster Point Pharma acquisition news

Oyster Point is a New Jersey-based commercial-stage biopharmaceutical firm that primarily focuses on developing pharmaceutical therapeutics for treating ophthalmic disorders. The company said on Monday, that it has entered into a definitive agreement with Viatris Inc. (NASDAQ:VTRS).

Under the agreement, the global healthcare and pharmaceutical corporation, Viatris would acquire the company. This marks Viatris' creation of its new ophthalmology franchise, which would further advance the product pipeline of Oyster Point Pharma.

Following the news, the VTRS stock soared over 11 per cent to US$ 10.84 at 9:45 am ET on Monday, and its trading volume was more than 3.58 million.

According to the announcement, the Canonsburg, Pennsylvania-based global pharmaceutical company would initiate a tender offer to acquire all the outstanding shares of Oyster Point, for US$ 11 per share in cash at closing.

In addition, it would include a CVR for a potential cash payment of up to US$ 2 per share, depending on Oyster Point Pharma achieving certain targets for fiscal 2022. The commercial-stage biopharmaceutical firm's board has nodded to the acquisition deal unanimously.

Source: ©Kalkine Media®; © Canva via Canva.com

Bottom line:

The OYST stock price was up 38.80 per cent at 9:39 am ET on Monday, November 7, to trade at US$ 11.59 while its volume totaled over 2.73 million as of writing. The stock closed at US$ 8.35 last Friday, November 4.

The biotech company said on November 2, that it would report its Q3 FY22 earnings results on November 10, after the session close on Wall Street. In Q2 FY22, Oyster Point Pharma incurred a net loss of US$ 1.87 per share on revenue of US$ 4.69 million.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.