The  announcement of second lockdown measures in England gave biotechnology shares involved in Covid-19 testing another a boost with Avacta (AVCT:AIM), Omega Diagnostics (ODX:AIM), Genedrive (GDR:AIM) all registering gains.

However these moves were overshadowed by the 110% gain in gene cell engineering company [bold] Horizon Discovery (HZD:AIM) and the 75% gain in blood flow monitoring firm LiDCO (LID:AIM) which both received takeover offers. The premiums offered in these transactions suggests the industry sees the market as undervaluing some biotech firms.

Horizon Discovery shareholders received an all-cash offer of 185p per share cash offer worth £296 million, representing a 108.3% premium to the closing price on 30 October of 88.8p. The directors of Horizon unanimously recommended the offer.

The buyer is US based life science firm [bold] PerkinElmer which generates revenues of $3.4 billion and has a market capitalisation of $14.4 billion. The company said it had received acceptance from 21.1% of Horizon’s shareholders.

Meanwhile LiDCO shareholders received an all-cash offer of 12p per share from Masimo Corporation, valuing the company at £31.1 million and representing a 77.8% premium to a 30 October closing price of 6.75p. The board have recommended the offer with Masimo having garnered agreement from 37.7% of LiDCO’s shareholders.

Masimo is a Nasdaq listed global medical technology company with a market capitalisation of $12 billion.

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