The Cynata Therapeutics Ltd (ASX: CYP) share price has been one of the best performers on the local market in morning trade.
At the time of writing the clinical-stage stem cell and regenerative medicine company's shares are up 15.5% to $1.85.
This means the Cynata share price has now gained a remarkable 48% since the start of the month.
Why is the Cynata share price on fire today?
This morning the company's shares returned from a trading halt which was requested so that it could respond to an ASX Price Query which was received after the market close on Tuesday.
That ASX Price Query was triggered by a change in the price of the company's shares from a low of $1.23 to a high of $1.60 over the five trading days to July 16.
According to today's release, although the company doesn't believe it was the cause of the rise, it revealed that it has received an indicative, non-binding and conditional proposal from Sumitomo Dainippon Pharma regarding a possible acquisition at a price of $2.00 cash per share by way of a scheme of arrangement.
The release advises that the Cynata board has decided to grant non-exclusive due diligence access to Sumitomo Dainippon Pharma.
It also revealed that it has engage with other parties in relation to making a proposal, but these discussions have now ceased.
Management advised that the ongoing negotiations between Cynata and Sumitomo Dainippon Pharma are incomplete and any entry by the parties into binding transaction documents remains subject to a number of conditions.
As such, it warned that there is no certainty that an agreement will be reached or that the proposal will be implemented. It advised shareholders to take no action at this stage.
Elsewhere in the healthcare sector, the Ellex Medical Lasers Ltd (ASX: ELX) share price has crashed lower following the resignation of its CEO and the CSL Limited (ASX: CSL) share price has edged higher on the back of no news.
