CoLucid's Stock Soars After $960 Million Buyout Deal With Eli Lilly

Shares of CoLucid Pharmaceuticals Inc. soared 31% in premarket trade Wednesday, after the developer treatments for acute migraines agreed to be acquired by Eli Lilly & Co. for $960 million in cash. Under terms of the deal, Eli Lilly will pay $46.50 for each CoLucid share outstanding, representing a 33% premium to Tuesday's closing price of $34.90. Eli Lilly expects to record a charge of $850 million, or 80 cents a share, in the first quarter of 2017, as an acquired in-process research and development charge. The deal is expected to close by the end of the first quarter. CoLucid's key drug is lasmiditan, which was originally discovered at Eli Lilly and was out-licensed to CoLucid in 2005. CoLucid's stock has rocketed five-fold over the past 12 months through Tuesday, while Eli Lilly shares have lost 5.4% and the S&P 500 has gained 21%.