Why Compugen Surged 14% Higher on Thursday

Ambitious Israel-based biotech Compugen's (NASDAQ: CGEN) stock had one of the best days in its history Thursday. The shares rose 14% after the company revealed that a deep-pocketed strategic investor will top its list of institutional stockholders.

Compugen said that it has struck a deal with pharmaceutical giant Bristol Myers Squibb (NYSE: BMY) for the latter to invest $20 million into its equity. In return, Bristol Myers Squibb will receive just over 2.33 million freshly issued Compugen shares. That equates to slightly more than $8.57 per share, which Compugen didn't hesitate to point out is 33% above its stock's closing price on Tuesday.

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Source Fool.com