Shares of Biogen fell hard in pre-market trading Thursday, a day after they surged on reports that the biotech was being acquired by Samsung — something Samsung later denied.
On Wednesday The Korea Economic Daily, citing unnamed investment banking sources, reported that Samsung is in negotiations to buy Biogen for about $42 billion — a 20% premium on Biogen’s current market value of $35 billion. The news was later reported by U.S. financial websites, helping to push Biogen’s stock price up more than 9% to $258.31 on Wednesday.
That rally didn’t continue into Thursday morning, however, as Samsung officials have been busy denying that it has plans to acquire Biogen. A Samsung spokesperson told Barron’s in an emailed statement that the report was groundless, Barron’s reported. Meanwhile, Biogen told Barron’s it does not comment on market rumors and/or speculation.
Samsung BioLogics, the biotech unit of Samsung Group, also denied the buyout rumors, saying in a regulatory filing that the report was “not true” without providing any more details, Reuters reported.
What is true is that Biogen’s stock price fell as much as 15% in pre-market trading Thursday as the air was taken out of the buyout balloon.
There’s nothing new about companies denying buyout rumors before they have a chance to announce the buyout themselves, and there is certainly reason to believe Samsung might have an interest in Biogen. So if you’re looking to cash in Biogen’s potential as an acquisition target, maybe don’t give up just yet.
As Reuters noted, Samsung Group earlier this year said it will invest 240 trillion won ($206 billion) over the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics.
More From GOBankingRates