Biogen’s Stock Skyrockets Following News of Contract Talks

Following a South Korean media report that the business was in discussions to sell itself to Samsung Group, Biogen’s Inc shares rose the highest since the company’s Alzheimer’s disease medicine was approved in the United States earlier this year.According to the Korea Economic Daily, the US biotechnology business approached the Seoul conglomerate about an acquisition, citing anonymous sources.

According to the research, Biogen’s income has been relatively consistent in comparison to “cyclical businesses like semiconductors,” which have fuelled earnings at Samsung.According to a  spokeswoman, the business does not comment on market rumors and conjecture.In a regulatory filing, Samsung Biogen’s Co, a biotechnology company of Samsung Group, stated that the report is false shares rose as much as 13% intraday, the most since June 7, before closing the day up 9.5 percent at 258.31 USD.

A deal for Biogen’s, with a market value of US$38 billion following Wednesday’s surge, would surpass the 34 USD billion Medline Industries Inc mergers, the year’s second-largest acquisition, according to Bloomberg data.According to research, a purchase might approach or surpass Discovery Inc’s 43 US$ billion transaction for Warner Media LLC, which was disclosed in May.The company is most known for its treatments for multiple sclerosis, as well as the Alzheimer’s drug Aduhelm.

Last year, the firm earned 13.4 USD billion in revenue and employed over 9,100 people.Biogen’s received permission for Aduhelm in June, over the reservations of specialists who stated that there was insufficient concrete proof that it worked. Since then, the medicine has struggled to gain traction as patients and payers have been put off by the scientific disagreement and the treatment’s annual cost of 56,000 USD.