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Large pharmaceutical companies are reportedly eyeing a potential takeover deal for Global Blood Therapeutics (NASDAQ:GBT), according to a Bloomberg report Thursday.
Citing people familiar with the matter, the report states biopharmaceutical firm Global Blood Therapeutics is working with advisors to study potential interest, although there is no certainty a takeover will occur.
Global Blood Therapeutics shares jumped 36% following the news, their highest point since March 2021.
A Goldman Sachs analyst reacted to the report, maintaining a Buy rating and $66 price target.
“GBT is the rare commercial stage smid-cap biotech in the attractive sickle cell disease market with next generation pipeline assets advancing in the clinic. After market close on Wednesday (08/03), Bloomberg (LINK) reported that GBT is drawing takeover interest from large pharmaceutical companies, while also noting that there are multiple potential bidders, and that a deal is not certain,” said the analyst.
“While we take no view on the likelihood of a potential transaction, we note that Oxbryta NRx growth has materially improved in 2022 after flat to slightly down trends during the COVID-19 pandemic, and a larger/stronger rare disease or hematology sales force could give it a better chance for even greater uptake and accessing new prescribers (thus expanding NRx). After a lull in biotech M&A, an acquisition of GBT would be consistent with the recent pick up in later-stage biotech deal announcements (PFE/BHVN; BMY/TPTX), in our view,” added the analyst.
