Biotech ETFs go Skyward post InterMune-Roche Deal

BrokerDealer.com blog post courtesy of extract from zacks.com and Sweta Killa

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InterMune (ITMN Snapshot Report) was a star performer in Monday trading session, as the stock skyrocketed more than a third on the day. The massive gain for this biotech firm came after the Swiss drug maker Roche Holding (RHHBY Analyst Report) agreed to buy InterMune for $8.3 billion.

As per the deal, Roche will pay $74 per share in cash, which represents 38% premium to the ITMN closing price as of August 22 and 63% premium to the price on August 12 when the potential takeover of InterMune was initiated. The deal is expected to close by the year end (read: A Comprehensive Guide to Biotech ETFs).

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