Andrew Linden
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The great instrument to move the stock is M&A rumors

Yes, I am talking about RLYP - the stock that surged 60% today. Reuters published the following article today. 19 minutes ago Carl O'Donnel:

Merck & Co Inc (MRK.N), Pfizer Inc (PFE.N) and Biogen Inc (BIIB.O) have all expressed interest in acquiring undervalued biotechnology companies. Unlike some of its biotech peers, Relypsa has strong finances, with nearly $300 million of cash and near-term investments as of September.

I re-read the whole article several times, but didn't find anything showing that RLYP could be acquired by the company. It just says that RLYP is one of the most interesting stocks among other biotech to be acquired. That's it. RLYP looks definitely good: they have a number of drugs on all three phases, spends on the research and development not so much (around $50M), but I don't see why the stock soars today.

Rumors are moving the stock. Can you guess how big the drop will be?