Why Prevail Therapeutics Stock Is Skyrocketing Today

Shares of Prevail Therapeutics (NASDAQ: PRVL) were skyrocketing 83.6% higher as of 11:05 a.m. EST on Tuesday. The huge jump came after Eli Lilly (NYSE: LLY) announced plans to acquire Prevail in a deal totaling $1.04 billion. 

Lilly offered $22.50 per share in cash to buy Prevail. The big drugmaker also threw in a non-tradable contingent value right (CVR) that's worth up to $4 per share. This CVR will be paid in full if Prevail wins regulatory approval for a product in either the U.S., Japan, U.K., Germany, France, Italy, or Spain by Dec. 31, 2024. After that date, the CVR's value will be reduced by around $0.083 per month through Dec. 1, 2028, when the CVR will expire.

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Source Fool.com