What happened to Sirtex share price?
Sirtex Medical [ASX:SRX] shares are up a 45.94% today. Shares were trading at $27.48 at time of writing, after a trading halt yesterday.
Why the share price increase?
The company’s board has agreed to a $1.6 billion takeover proposal from US company Varian Medical Systems [NYSE:VAR]. The takeover will pay $28 per share, higher than the $18.83 it was trading on Monday.
Varian specialises in developing and delivering cancer solutions. The company has about 6,500 employees worldwide, and an approximate market cap of US$11.8 billion.
Sirtex Medical is an Australian-based global healthcare company working to improve cancer treatments using novel small particle technology.
Sirtex shares are up almost 66% since the beginning of the year after it reported better than expected earnings for the first half of FY18 and anticipated higher sales for the second half of the year.
What now for Sirtex?
Sirtex suffered a setback back in May 2017 after a clinical study found their tumor fighting medication did not improve survival rates on colorectal cancer patients when compared to using chemotherapy alone. Sirtex shares tumbled 28% then.
In late 2017, Sirtex received a number of acquisition proposals, and decided that Varian’s was the best offer.
Sirtex shareholders will be voting on the proposal on May 2018 and the company will be releasing financial results for the six months to 31 December 2017 on 21 February 2018.
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For Money Morning