Why Did OCUL Stock Jump 13% In Pre-Market Today?

French pharmaceutical giant Sanofi is preparing an offer to acquire the American biopharmaceutical firm, according to a report by French publication La Lettre.

• Ocular Therapeutix had reportedly rejected Sanofi’s initial takeover bid in September.
• If the acquisition goes through, it would bolster Sanofi’s footprint in ophthalmology.
• Sanofi recently acquired Dynavax to boost its vaccine portfolio.

Ocular Therapeutix (OCUL) was back on retail’s radar, with the stock surging 13% in premarket trading on Thursday, after reports emerged that French pharmaceutical giant Sanofi (SNY) is preparing an offer to acquire the American biopharmaceutical firm.

According to French publication La Lettre, the renewed interest comes after Ocular Therapeutix rejected Sanofi’s initial takeover bid in September, when the group offered $16 per share, a substantial premium to Ocular’s then-trading price of about $10.50.

OCUL shares have been on a downtrend lately, declining in 11 of the last 13 sessions. SNY stock was down 0.4% in pre-open trade.

Acquisition Rationale

If the acquisition goes through, it would bolster Sanofi’s footprint in ophthalmology, particularly in age-related macular degeneration, which affects the central part of the retina.

At the same time, it could support Sanofi’s push into combination therapies, with Ocular’s treatments, such as Dextenza for ocular inflammation, potentially pairing well with existing drugs like Dupixent, given studies suggesting links between chronic skin conditions and eye disorders such as cataracts.

Sanofi’s Acquisition Spree

Sanofi has been ramping up its strategy to add to its portfolio through key acquisitions over the last few months. In late December, Sanofi signed an agreement to acquire vaccine maker Dynavax Technologies Corp (DVAX) in a $2.2 billion deal aimed at strengthening its adult immunization portfolio. The transaction will strengthen Sanofi’s global vaccines business by bringing in Dynavax’s approved adult hepatitis B vaccine, HEPLISAV-B, along with a differentiated shingles vaccine.

In June, Sanofi agreed to acquire Blueprint Medicines for about $9.1 billion to deepen its presence in the cure for rare immunological diseases. The acquisition added Ayvakit/Ayvakyit, the only approved treatment for systemic mastocytosis, along with pipeline assets including Elenestinib and BLU-808 to Sanofi’s portfolio.

How Did Retail React?

Retail sentiment for OCUL on Stocktwits remained in the ‘extremely bullish’ zone over the past 24 hours, accompanied by ‘extremely high’ message volumes.

One user sees upside in OCUL stock due to the offer.

OCUL shares have gained around 34% over the past year.

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