GSK offered to buy Rapt Therapeutics for a sizable premium to its recent market value.
Rapt's experimental antibody therapy could help millions of people who suffer from severe food allergies.
Shares of Rapt Therapeutics (NASDAQ: RAPT) surged on Tuesday after the immunology specialist struck a deal to be acquired by British pharmaceutical leader GSK (NYSE: GSK) for $2.2 billion.
By the close of trading, Rapt's stock price was up more than 60%.
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Under the terms of the deal, Rapt's investors would receive $58.00 per share. That's a premium of over 65% to the biotech stock's closing price on Jan. 16, the last trading day prior to the acquisition announcement.
The deal would give GSK the global rights to ozureprubart outside of mainland China, Macau, Taiwan, and Hong Kong. Ozureprubart is Rapt's experimental antibody treatment designed to provide protection against food allergens with less frequent dosing than existing therapies. The drug is currently in phase 2 clinical trials.
"The addition of ozureprubart brings another promising new, potential best-in-class treatment to GSK's pipeline," GSK chief scientific officer Tony Wood said in a press release.
The deal is projected to close in the first quarter, subject to regulatory approval.
More than 17 million people have food allergies in the U.S alone. Over 1.3 million people struggle with severe reactions.
Rapt's investigational antibody treatment targets a protein that triggers approximately 94% of severe food allergies.
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends GSK. The Motley Fool has a disclosure policy.