Icosavax Shares Take Flight on Takeover by AstraZeneca

By Colin Kellaher

Shares of Icosavax jumped nearly 50% in premarket trading Tuesday after the vaccine developer agreed to be acquired by pharmaceutical giant AstraZeneca in a deal worth up to $1.1 billion.

AstraZeneca is paying an initial $838 million, or $15 a share, in cash for Icosavax, a 43% premium to Tuesday's closing price of $10.49 for the Seattle company.

Icosavax said its investors also will receive non-tradable contingent value rights tied to future regulatory and sales milestones that are worth up to $5 a share in cash, bringing the total potential deal value to $20 a share, more than 90% above Tuesday's closing price.

The deal is slated to close in the first quarter of 2024.

Icosavax shares were recently up 49% to $15.59 in premarket trading.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

12-12-23 0610ET