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May 5, 2020, 9:37 a.m. EDT

Portola's stock more than doubles on heavy volume after Alexion buyout deal

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By Tomi Kilgore

Shares of Portola Pharmaceuticals Inc. more than doubled in very active morning trading Tuesday, after the biopharmaceutical company focused on life-threatening blood-related disorders announced a deal to be acquired by Alexion Pharmaceuticals Inc. /zigman2/quotes/206262068/composite ALXN -2.09% in a deal that values Portola at about $1.4 billion. Trading volume swelled to 30.8 million shares, compared with the full-day average of about 1.7 million shares. Elexion's stock fell 4.4% in morning trading. Under terms of the deal, Alexion will launch a tender offer to buy Portola shares at $18 each in cash, which is 132% above Monday's closing price of $7.76. With about 78.08 million shares outstanding, that offer price implies a market capitalization of $1.41 billion. As part of the deal, Alexion will be acquiring $215 million of cash on Portola's balance sheet, net of debt. Alexion said it will fund the deal with cash on hand. Portola's stock has still lot 25.4% year to date, while Alexion shares have slipped 8.1% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.84% has declined 10.9%.

/zigman2/quotes/206262068/composite
US : U.S.: Nasdaq
$ 114.13
-2.44 -2.09%
Volume: 2.75M
Sept. 17, 2020 4:00p
P/E Ratio
30.50
Dividend Yield
N/A
Market Cap
$25.55 billion
Rev. per Employee
$1.56M
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/zigman2/quotes/210599714/realtime
US : S&P US
3,357.01
-28.48 -0.84%
Volume: 2.74B
Sept. 17, 2020 5:14p
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