Springworks Stock Soars To Nearly 3-Year High On Buyout Buzz, Retail Sentiment Rockets

Springworks Therapeutics shares surged over 36% Monday, reaching levels last seen in mid-April 2022, as buyout speculation drove heavy trading. 

The stock is on track for its best day on record following a Reuters report that German healthcare and technology group Merck KGaA is in advanced talks to acquire the company, according to people familiar with the matter. 

If discussions are successful, a deal could be signed in the coming weeks, though neither Springworks nor Merck have commented on the report yet.

Springworks is a commercial-stage biopharmaceutical company developing treatments for severe rare diseases and cancer. 

Ogsiveo, the company's first FDA-approved therapy, is used in the U.S. to treat adult patients with progressing desmoid tumors who require systemic treatment.

On Stocktwits, sentiment for Springworks was 'extremely bullish' as message volume spiked, pushing the stock into the list of top trending symbols by late Monday morning. 

Retail traders flooded the platform with congratulatory messages for long-term holders, though some warned that a sharp pullback could occur if official statements refute the buyout rumors.

Last month, Springworks pre-announced fourth-quarter U.S. Ogsiveo sales of $61.5 million, exceeding TD Cowen's $57.0 million estimate and consensus expectations of $59.8 million. The brokerage had suggested that a buyout could be on the horizon.

Springworks stock has risen 16% over the past 12 months. According to Koyfin data, its short interest stood at 18.4% as of the last check.

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