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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

Tweet on Biotech shares fluctuation

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.

 

@thejournalbiz
Source:WSJ/Factset
Image: Biotech