A cancer-drug developer's stock just surged more than 100% after Merck agreed to a multibillion-dollar takeover

Shares of the cancer-drug developer ArQule skyrocketed as much as 102% early Monday after Merck agreed to acquire the company in a $2.7 billion takeover.Merck offered $20 per share in the all-cash bid, more than double ArQule's Friday closing price of $9.66.ArQule's lead drug candidate, ARQ 531, is in phase-two testing as a treatment for blood cancer.Watch ArQule trade live here.Watch Merck trade live here.Visit Business Insider's homepage for more stories.Shares of the cancer-drug developer ArQule spiked as much as 102% early Monday after Merck said it would acquire the firm in a $2.7 billion takeover.Merck offered $20 per share in the all-cash bid, more than double ArQule's Friday closing price. The deal is expected to close in the first quarter of 2020, the companies said in a press release."With this agreement, ArQule's pipeline will benefit from Merck's vast capabilities and determined engagement to benefit the patients who we have always strived to serve," ArQule CEO Paolo Pucci said in the release.Merck traded as much as 0.7% higher on the news.ArQule's lead drug candidate, ARQ 531, is in phase-two testing as a treatment for blood cancer. The orally delivered drug targets B-cell malignancies and showed "early signs of anti-tumor activity" in early clinical trials, the release said.ARQ 531 bolsters Merck's lineup as analysts call for the pharma giant to diversify its revenue drivers. Keytruda has served as Merck's blockbuster medicine since it was first approved for cancer treatment in 2014.ArQule closed at $9.66 per share Friday, up 249% year-to-date. The company has 11 "buy" ratings, no "hold" ratings, and no "sell" ratings from analysts, with a consensus price target of $13.73, according to Bloomberg data.Merck closed at $88.85, up 16% year-to-date. The firm has 16 "buy" ratings, three "hold" ratings, and no "sell" ratings from analysts, with a consensus price target of $97.75.Now read more markets coverage from Markets Insider and Business Insider:Only one cryptocurrency is outperforming bitcoin this yearand its exchange has pioneered the practice of destroying coins every quarterBillionaire hedge-fund manager Bill Ackman is poised to exceed 50% returns after a 3-year droughtMcDonald's elects WNBA commissioner to board following CEO shakeup and renewed emphasis on corporate ethicsJoin the conversation about this storyNOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption
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