89Bio (ETNB) Soars 86 Percent to Historic High on $3.5-Billion Roche Merger

We recently published 10 Stocks Stole the Show, 5 Hit Historic Highs. 89bio Inc. (NASDAQ:ETNB) is one of the best performers on Thursday.

Shares of 89bio surged to a fresh record high on Thursday as investor funds poured into its stock following announcements that it was set to be acquired by Swiss company Roche for $3.5 billion.

At intra-day trading, 89bio Inc. (NASDAQ:ETNB) soared by as much as 86 percent to its highest 52-week price of $15.06, before trimming gains to end the day just up by 85.15 percent at $14.96 apiece.

In a statement, Roche said it entered into a definitive agreement to acquire 89bio Inc. (NASDAQ:ETNB) as it aims to advance innovative therapies in cardiovascular, renal, and metabolic diseases (CVRM), especially for patients affected by overweight, obesity, and related health challenges such as MASH.

Under the agreement, Roche will conduct a tender offer of all outstanding and issued shares of 89bio Inc. (NASDAQ:ETNB) at a price of $14.50 apiece.

The acquisition also includes a non-tradable CVR to receive certain milestone payments of up to an aggregate of $6.00 per share in cash, representing a total equity value of approximately $2.4 billion at closing, and a total deal value of up to $3.5 billion.

The price was said to be a premium of 52 percent over 89bio Inc.’s (NASDAQ:ETNB) 60-day volume weighted average price last September 17.

Roche said it expects to close the transaction in the fourth quarter of the year.

While we acknowledge the potential of ETNB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.