Ariad Pharmaceuticals (ARIA) Shares Explode After Takeover News

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Shares of Ariad Pharmaceuticals soared 73% and had its best trading day in 17 years on Monday. Why the big explosion? The company announced that it is being bought out by Japanese pharmaceutical company Takeda Pharmaceuticals.

In the agreement, Takeda will buy Ariad for $24 a share, or about $5.2 billion. The boards of both companies signed off on the deal which is expected to close by the end of February.

Ariad Chairman Alexander Denner commented in a release, “This transaction is a great outcome for shareholders of Ariad and Takeda. Both Ariad and Takeda are passionate about helping cancer patients, and I believe the talent and resources of Takeda coupled with Ariad’s pipeline and people will accelerate the development of cancer treatments.”

“The acquisition of Ariad is a unique opportunity that will enable us to positively impact the lives of more patients worldwide, advance our strategic priorities and generate attractive returns for our shareholders,” said Christophe Weber, Takeda’s president and chief executive officer.

Disclaimer: We have no position in Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) and have not been compensated for this article.