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Biotech Buyout Deals Short Sellers Another Blow

Eli Lilly’s planned purchase of Dice Therapeutics for $2.4 billion is a big win for the small biotech’s shareholders. It also meant that short sellers once again rolled their eyes in disbelief

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Factset chart

Shares of Dice, which develops treatments to fight chronic disease in immunology, rose sharply Tuesday after the pharma giant said it plans to purchase Dice for $48 per share in cash.

That is another loss for investors who bet on stock prices to decline. About 20% of Dice’s publicly available shares were sold short before the announcement, according to FactSet.

Short sellers have incurred roughly $120 billion in mark-to-market losses so far this year.

Lilly shares were up about 1% in afternoon trading.


Image: Biotech