Rhythm Pharmaceuticals stock surges 28% on AstraZeneca bid report

Rhythm Pharmaceuticals (NASDAQ) shares surged 28% on Wednesday after The Wall Street Journal reported that AstraZeneca (NASDAQ) had made a $10 billion acquisition offer for the biotech company. 

According to the report, the U.K.-based drugmaker offered $124 per share for Rhythm last month. Rhythm shares closed at $110.68, up from around $95 earlier in the session, giving the company a market capitalization of approximately $7.7 billion at the close, compared with roughly $6.6 billion earlier in the day.

A potential acquisition would expand AstraZeneca’s portfolio of rare disease treatments. Rhythm specializes in therapies for rare metabolic disorders, including severe obesity.

AstraZeneca had previously expressed interest in acquiring Rhythm, according to people familiar with the matter cited by the Journal.