At the US technology exchange Nasdaq, one stock has caused a stir this year. The share price of biotechnology startup Dyne Therapeutics Inc., specializing in genetically inherited muscle diseases, has risen by more than 60% since the beginning of the year.

This phenomenal price development has two main reasons: the research and development company has achieved success with two of its drugs currently in the clinical phase.

Another reason is the emergence of acquisition rumors: as a reader of my takeover monitor, you know that successful developments of research startups are of great interest to large pharmaceutical companies and can fuel speculation.

This seems to be the case with Dyne Therapeutics as well. The well-informed business service Bloomberg reported on Friday (January 26, 2024) that several pharmaceutical companies are showing interest in an acquisition or cooperation.

But before I explain further details about the spectacular price development of Dyne stock, I would like to introduce the biotech startup briefly.

Dyne Therapeutics in brief Dyne Therapeutics, Inc. was founded in 2017 and is based in Waltham, Massachusetts (Greater Boston area). Dyne Therapeutics specializes in the development of therapeutics for genetically inherited muscle diseases. The company employs about 130 people, the majority of whom are scientists.

Dyne’s research and development work is based on the company’s own FORCE platform, which provides disease-modifying therapeutics. The drugs developed by Dyne Therapeutics are intended to help patients regain muscle strength and improve their daily lives.

As is common with biotech startups in the research and development sector, Dyne Therapeutics has not generated any revenue in recent years. The operating loss (EBIT) for the 2022 financial year (no newer figures are available yet) was approximately $171 million (USD – equivalent to approximately €157 million).

The company is funded by venture capital investors. There have been 5 financing rounds so far, with the last round, in which new shares were issued, bringing in approximately $345 million in early January.

Positive study results… But now back to the reasons for the phenomenal increase in the Dyne stock price in the first weeks of the new year. The first jump in the share price was triggered by the release of study results on January 2nd and 3rd.

Dyne announced that two of its therapeutics had performed very well in clinical trials. This resulted in the stock price rising by over 48% within two days.

…and acquisition rumors cause another jump in the stock price Another jump in the stock price was caused by an article from the renowned US business service Bloomberg. On January 26, 2024, Bloomberg reported that it had learned from well-informed sources that large pharmaceutical companies were interested in acquiring or partnering with Dyne.

As a result, on that day, the Dyne stock price rose by another 18.2% to $21.16. This meant that the market value of the biotech company was a proud $1.66 billion over the past weekend.

This is how it can continue If the acquisition rumors are confirmed and Dyne is acquired or partnered with a pharmaceutical giant in the near future, the Dyne stock price certainly has potential to rise further.

As you, as a reader of my stock market service, know, high acquisition premiums are paid, especially in the biotechnology sector.