Paratek Pharma's 30% Surge, Explained

Shares of Paratek Pharmaceuticals Inc PRTK soared by more than 30 percent on Wednesday after a Bloomberg report suggested the company is looking to sell itself to a larger peer.

Sources close to the matter told Bloomberg that Paratek is still in the exploration phase and is consulting with advisers and no guarantees can be made at this time that a sale will finalize.

Attractive Candidate

Paratek could be an attractive takeover candidate after the company's phase 3 trial of an oral-only omadacycline succeeded in its efficacy objectives, FierceBiotech noted. The company will proceed with a regulatory submission by the end of the year.

Paratek's management boasted its early success for a company of its size, having said during its second-quarter conference call that its antibiotic have "historically been the purview of large pharma companies only ... and large pharma has not developed such a drug in almost a generation."

"It is important to remember that a once-daily oral only dosage regimen is a hallmark of the most successful blockbuster antibiotics," FierceBiotech quoted CEO Michael Bigham as saying.

Not The First Time

However, investors should keep in mind that Paratek's name has been mentioned before as being a takeover candidate, FierceBiotech added. A report back in May suggested that Allergan plc Ordinary Shares AGN, a current partner of Paratek in its acne division, placed an offer to fully acquire the company.

Nevertheless, months has passed and Paratek remains a standalone company.

At time of publication, the stock traded at $25.13, up 31.7 percent.