Compugen’s stock shoots up after Bristol-Myers to pay 52% premium for equity stake
Shares of Compugen Ltd. shot up 17% in premarket trade Thursday, after Bristol-Myers Squibb Co. said it will make a $12 million equity investment as part of a collaboration on a cancer treatment. As part of the agreement, Bristol-Myers will buy about 2.4 million shares at $4.95 a share, which is 52% above Wednesday’s closing price of $3.25. The companies have entered into a clinical trial collaboration to evaluate the safety and tolerability of Compugen’s investigational anti-PVRIG antibody, COM701, in combination with Bristol-Myers’ immune checkpoint inhibitor Opdivo, in patients with advanced solid tumors. Bristol-Myers’ stock fell 1.3% ahead of the open. Year to date, Compugen’s stock has soared 30% through Wednesday, while Bristol-Myers shares have slipped 0.8% and the S&P 500 has gained 4.2%.