Fortress Biotech Inc (NASDAQ:FBIO) is best known for its work in the development, acquisition and commercialisation of biopharmaceutical products. However, in the last week, the company has had a pretty tough time in the capital markets and has recorded a decline of as much as 17%.
As it happens, the stock did not fare well yesterday and recorded a single day decline of 4%. Caelum Biosciences Inc is one of the companies to have been established by Fortress Biotech and yesterday it was announced that pharma giant AstraZeneca had closed the acquisition fo Caelum.
It goes without saying that it is a significant development for Fortress Biotech but the announcement did not have any positive effect on its stock. It was announced that AstraZeneca managed to complete the acquisition for a consideration of $150 million, which was the agreed exercise price as per an option.
The sum is going to be distributed to Caelum shareholders. However, that is not all. As per the terms of the agreement, the shareholders in Caelum also stand to get a maximum of $350 million if certain commercial and regulatory targets are eventually achieved. It might be a good time to add the Fortress Biotech stock to your watch lists.
