The ResApp Health Ltd (ASX: RAP) share price is leaping on news Pfizer has upped its bid for the company.
The biopharmaceutical giant has agreed to acquire the Brisbane-based health technology company for 20.8 cents per share. That's up from its previous bid of 14.6 cents.
The ResApp share price is trading at 18 cents right now, 50% higher than its previous close.
However, that's lower than its intraday high – and new 52-week high – of 19 cents.
Let's take a closer look at the latest news from the takeover target.
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ResApp share price takes off on upped takeover offer
The ResApp share price is soaring 50% on Wednesday after the company announced Pfizer has upped its takeover bid to 20.8 cents per share.
That sits within its assessed value range of 14.6 cents to 27.9 cents per ResApp share, as determined by an independent expert. It also values the company at around $179 million.
The pair have entered an amended scheme of arrangement agreement entailing the increased bid.
ResApp recommends shareholders vote in favour of the proposition in the absence of a superior proposal and subject to the independent expert continuing to conclude that the scheme is in investors' best interests.
How did we get here?
ResApp is the developer of a smartphone app designed to detect COVID-19 using cough sounds.
The tech was recently dealt a blow when a data confirmation study returned significantly worse results than a previous pilot study.
Pfizer first put a takeover proposal to ResApp in April. Then, it offered just 11.5 cents per share.
That bid was upped to either 20.7 cents or 14.6 cents in June. Though, the higher of the bids was dependent on positive findings from the data confirmation study, which hadn't been completed at the time.
Perhaps unsurprisingly, the ResApp share price plummeted 28.6% when the study's disappointing results were released.
