Healthcare stock F-Star Therapeutics (NASDAQ:FSTX) has been on the edge of disaster for the last month or so. Now, it’s been pulled back from the brink for good as a long-planned, but highly controversial deal has finally gone through. The news was welcome for investors, who sent F-Star surging in Tuesday afternoon’s trading.
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F-Star’s sale to Sino Biopharmaceuticals had been up in the air for some time. There were signs it might not go through, as the Committee on Foreign Investment in the United States stepped in to potentially halt the deal. The biggest issue at stake was national security, which the Committee believed would be imperiled by such a deal. Nevertheless, F-Star successfully convinced regulators that it would not put the country itself at risk.
Sino Biopharmaceuticals, for its part, will land a company with a growing slate of cancer therapies. One of these is called FS222, which both slows down one kind of immune system reaction and enhances a second kind known as the CD137 pathway.
The last five days of trading for FSTX stock showed that a lot of investors expected this deal to ultimately go through. Yes, F-star saw a huge spike today that sent the share price up around a whole dollar, but the general trend line was slowly climbing anyway. Today’s announcement likely just cemented what a lot of investors figured would be coming, and we’re seeing the results accordingly.
