Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. However, the buyout offer from Concentra Biosciences caused a sudden rise in the stock price, nearly reaching the $1.85 ceiling proposed by the acquisition deal.ĭisclaimer: The TipRanks Smart Score performance is based on backtested results. Although it is unclear who will pay these costs, a few employees will remain to complete the sale, and others will continue working on clinical trials, which will ultimately transfer to Concentra.Ī review of the last five days of trading for Jounce Therapeutics reveals that its stock price was gradually falling during most of that period. In addition, Jounce announced plans to lay off approximately 84% of its workforce in the next month, resulting in $6.5 million in restructuring costs. The buyout offer came at an interesting time for Jounce as the company’s board no longer recommended an earlier all-stock merger deal with Redx Pharma in the U.K. The offer represented a premium of 75% against Jounce’s closing price on March 14, and even after the recent rise, it still represents a premium of about $0.03 per share since it closed at $1.82. The acquisition deal proposed that Concentra would acquire Jounce for $1.85 per share, along with a non-tradeable contingent value right. Following a buyout offer from Concentra Biosciences, Jounce’s stock price surged over 20% in Monday’s trading session. However, a buyout offer can also have a significant impact, as demonstrated by Jounce Therapeutics ( NASDAQ:JNCE). Biotech stocks are known to be highly sensitive to specific events such as patent action and FDA testing.
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