Forty Seven stock (NASDAQ: FTSV) is up 61% again today after positive news of a buyout. Gilead Science (NASDAQ: GILD) agreed to buy Forty Seven Inc for approximately $4.9 billion to advance in one of the hottest areas of pharmaceutical research: cancer treatments that take advantage of the immune system to fight cancer tumors.
AlphaBetaStock.com added FTSV to our stock watch list in January and told readers to watch it after it rallied more than 200%. This was caused by positive news on a clinical trial drug called Magrolimab. The FTSV stock price was $39.40 … now the stock price is $93.79!!!
Gilead will acquire Forty Seven for $95.50 per share in cash in a transaction authorized by both boards in a statement on Monday. The price is a HUGE 96% premium to the closing price of FTSV on Thursday. Forty Seven stock rose 62% to $93.79!
Gilead’s hepatitis C franchise made the company a giant in the pharmaceutical industry. Still, treatment sales have dropped from their peak, and GILD has struggled to find new sources of revenue. The agreement with Forty Seven complements its acquisition of Kite Pharma in 2017, bringing an experimental therapy that has the potential to be the first in its class, said Executive Director Daniel O’Day.
“It fits perfectly with our strategy of finding areas of great unmet medical need,” said O’Day.
O’Day took the reins last March, saying that one of his top priorities was to strengthen Gilead’s drug portfolio.
FTSV has recently received interest from other potential suitors. The agreed price for the acquisition of Gilead includes options and guarantees.
Forty Seven’s experimental medicine, called magrolimab, is a monoclonal antibody in the first studies for several types of cancer that affect the blood and lymph nodes, including acute myeloid leukemia and diffuse large B-cell lymphoma.
Kite’s experimental therapy, Yescarta, has had problems with both private and government health plans because of the high price of a single treatment. But O’Day said he expects Forty Seven therapy to have fewer difficulties in the market.
The therapy points to a “do not eat me” signal that allows cancer cells to prevent destruction. The cancer medication blocks the signal, allowing the patient’s immune system to engulf and eradicate the malignant cells.
Forty-seven also has two experimental medications that can soon enter clinical trials, including an antibody that could be combined with magrolimab.
FTSV Stock Pivots
FTSV Technical Indicators
A quick view of the 1-hour technical indicators are very positive. The 5, 10, 20, 50, and 100 one day moving averages are all positive. There is always a potential of a dip given the sudden rise.
1 Day Moving Averages
Name Value Action
Exponential Moving Average (5) 65.72 Buy
Simple Moving Average (5) 59.73 Buy
Exponential Moving Average (10) 57.42 Buy
Simple Moving Average (10) 53.87 Buy
Exponential Moving Average (20) 51.02 Buy
Simple Moving Average (20) 48.30 Buy
Exponential Moving Average (30) 47.51 Buy
Simple Moving Average (30) 45.75 Buy
Exponential Moving Average (50) 42.16 Buy
Simple Moving Average (50) 43.13 Buy
Exponential Moving Average (100) 32.90 Buy
Simple Moving Average (100) 27.81 Buy
Exponential Moving Average (200) 24.65 Buy
Simple Moving Average (200) 18.45 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 65.10 Neutral
Volume Weighted Moving Average (20) 68.74 Buy
Hull Moving Average (9) 66.06 Buy
Ruchi has an Accounting and Graduate Degree in Business from the International School and Business and Media. She is exceptionally skilled in financial databases like Bloomberg, ThomsonOne,Datastream, CapitalIQ, and Factiva. Her focus at AlphaBetaStock.com is research breaking stocks and investment stories.