: Caribou Biosciences stock soars after Pfizer buys stock priced at a 31% premium

Shares of Caribou Biosciences Inc. CRBU ran up 21.3% toward a three-month high in premarket trading Thursday, after the genome-editing biopharmaceutical company said drug giant Pfizer Inc. has made a $25 million equity investment in the company. Pfizer shares slipped 0.1% ahead of the open. Under terms of the investment, Pfizer bought 4.69 million Caribou shares, or about 7.6% of the shares outstanding. Pfizer paid $5.33 for each share purchased, representing a 30.6% premium to Wednesday’s closing price of $4.08. Caribou said it will use the proceeds from the investment to fund its CB-011 immune cloaked allogeneic CAR-T cell therapy, which is currently in a Phase 1 trial to treat relapsed or refractory multiple myeloma. “We believe Pfizer’s investment in Caribou highlights the potential of our clinical programs and we are excited to establish this partnership with one of the world’s premier biopharmaceutical companies,” said Caribou Chief Executive Officer Rachel Haurwitz. The stock has dropped 35.0% year to date through Wednesday, while the iShares Biotechnology exchange-traded fund IBB has slipped 3.2% and the S&P 500 SPX has gained 15.8%.

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