Eli Lilly to buy Armo BioSciences for $1.6 bn

Will the FDA Shoot Down Eli Lilly and Incyte Again?

When we compare its current volume with average for the same time of day, a Relative Volume (usually displayed as ratio) of 0.74 is obtained. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.

One gauge of the relative volatility of a specific stock to the market is its beta. Most sudden stock spikes or dips demand the attention of anyone who is keeping a watchful eye. Eli Lilly and Company, a US based Company, belongs to Healthcare sector and Drug Manufacturers - Major industry.

The deal between the two companies will have Eli Lilly acquiring ARMO Biosciences Inc for $50 per share.

ARMO BioSciences, Inc., an immuno-oncology company, develops a pipeline of novel product candidates that activate the immune system of cancer patients to recognize and eradicate tumors in the United States. It's now being studied in a phase III trial in pancreatic cancer, as well as earlier-stage trials in lung and renal cell cancer (RCC), melanoma and other solid tumor types. ARMO also has a number of other immuno-oncology product candidates in various stages of pre-clinical development.

The acquisition will add to Lilly's program in immuno-oncology drugs, which use the immune system to fight cancer. "The acquisition of Armo BioSciences adds a promising next generation clinical immunotherapy asset to Lilly's portfolio of innovative oncology medicines".

Levi Garraway, Lilly's head of global oncology development and medical affairs, told BioWorld that the company has been looking for deals that give it "a first-in-class opportunity or a distinct mechanism of action". More interesting news about ARMO BioSciences, Inc.

Eli Lilly and Co said on Thursday it is willing to buy Armo BioSciences Inc, for US$1.6 billion, an offer of US$50 per share, which represents a premium of 68 percent to Armo's Wednesday close. The total dollar value of all 1.75 billion outstanding shares is 106.19 billion. Investec Asset Management LTD purchased a new position in Eli Lilly and in the fourth quarter valued at $163,570,000. The closing of the deal will be subject to customary closing conditions such as receipt of necessary regulatory approvals. BlackRock Inc. boosted its position in shares of Eli Lilly and by 1.2% during the fourth quarter.

Credit Suisse was the exclusive financial adviser to Lilly and Wachtell, Lipton, Rosen & Katz its legal adviser. (ARMO). A frequently used tool among technical stock analysts is the moving average.

Volatility is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. A security with a beta greater than 1 indicates that it is more volatile than the market.

ARMO BioSciences, Inc.'s stock is facing various challenges, but there is also a lot of space for achieving higher profits. The company has market cap of $15.78 billion.

SMA (Simple Moving Average): Its distance from 20 days simple moving average is -0.66%, and its distance from 50 days simple moving average is 0.88% while it has a distance of -3.4% from the 200 days simple moving average. The stock carved out a 52-week low down at $73.69.

Its Average True Range (ATR) shows a figure of 3.46. For example, if stock's weekly and monthly performances are positive as compared to year and YTD performance percentage also seems to decrease in comparison to the previous year performance, then one can say that the stock is bouncing back and may able to gain more and more in near future and vice versa. Analyst recommendation for this stock stands at 2.2. At present, 5 analysts recommended Holding these shares while 0 recommended sell, according to FactSet data. Following the transaction, the chief financial officer now owns 20,029 shares of the company's stock, valued at $1,586,296.80.

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