Biotech Stock Soars on AstraZeneca Buyout

Fusion Pharmaceuticals Inc (NASDAQ:FUSN) stock is skyrocketing today, after news that AstraZeneca (AZN) is acquiring the Canadian biotech company for $2.4 billion, or $21 per share. As part of the deal, AZN will gain access to the cancer specialist's most advanced program, FPI-2265, which focuses on prostate cancer. 

In response, Wedbush cut its rating to "neutral" from "outperform," while Jefferies downgraded the shares to "hold" from "buy," though both firms hiked their price-target hikes. No brokerage in coverage rates the biotech a "sell" or worse. 

At last look, FUSN was up 97.3% to trade at $20.99, earlier hitting a record peak of $21.12. Since the start of the year, the stock is up over 118%, and is a far cry from its Sept. 11 annual lows of $2.31. 

In the options pits, Fusion Pharmaceuticals stock has already seen 40.4 times the average daily volume, with 9,973 puts and 15,000 calls exchanged so far. The April 20 put is the most active contract, where new positions are being bought to open. 

Short covering could account for some of today's price action as well, as short interest represents 15.6% of the stock's available float. It would take shorts nearly seven days to cover their bets at FUSN's average pace of trading.