Forty Seven (NASDAQ:FTSV) shareholders outperformed a historically weak market by a wide margin last month as the stock gained 57% compared to an 8% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.
The rally contributed to a gain of more than 100% in the biotech specialist's shares so far in 2020.
Investors bid up shares of the cancer drug specialist after rumors surfaced about a potential buyout offer coming from healthcare giant Gilead Sciences (NASDAQ:GILD). The rumors were confirmed in early March when Gilead announced it will purchase Forty Seven for just over $95 per share in cash, equating to a $4.9 billion value.
The transaction has been approved by the respective company boards, but still has to meet the usual regulatory approvals and closing conditions. Yet the acquisition appears almost certain to go through, and is anticipated to close over the next few months.
If they simply hold their stock until then, Forty Seven shareholders will see the shares converted to cash at the $95.50 per share rate. From there, Gilead is hoping that its bulked-up oncology pipeline will help spur faster growth in the decades to come.