The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Forte Biosciences (FBRX) ripped higher on Monday after the Dutch immunology giant, Argenx (ARGX), announced a definitive agreement to acquire it for $2.2 billion. The all-cash transaction is expected to close in the third quarter of 2026 and values FBRX shares at $77 each, representing a huge 40% upside on their previous close.

Following today's gains, Forte Biosciences stock is trading at more than 3.5x its price at the start of this year. 

Billionaire Charlie Munger Said Your First $100K Is the Key to Getting Rich — 'I Don't Care What You Have to Do ... Find a Way.' Then You Can 'Ease Off the Gas a Little.'

Why This Analyst Is Betting AMD Stock Can Hit $1,250 in the Next Year

Dear Bloom Energy Stock Fans, Mark Your Calendars for July 28

Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!

Argenx is willing to pay a steep premium primarily to secure Forte's lead asset, FB102, a first-in-class anti-CD122 monoclonal antibody that selectively targets pathogenic T-cell and NK-cell activity. 

The buyout positions Argenx to strategically diversify its immunology pipeline beyond its primary commercial driver, Vyvgart, into large, underserved autoimmune markets. 

FB102 has already delivered encouraging Phase 1b clinical proof-of-concept in vitiligo and celiac disease, with critical Phase 2 readouts anticipated in the second half of 2026. Beyond these initial targets, FB102 holds therapeutic promise for broader indications like alopecia areata. 

In short, by absorbing Forte's high-potential pipeline, Argenx gains a clinically validated asset poised to power its future growth. 

With Forte Biosciences shares already trading just below the buyout price of $77, potential for any further upside appears rather limited. 

The modest discrepancy between the current and deal price is broadly known as an arbitrage spread; it reflects the minimal time value of money and closing risks, including regulatory clearance or shareholder tender completion. 

Given that the acquisition is backed entirely by Argenx's existing cash reserves without financing contingencies and has unanimous board approval as well, it faces very low failure risk. 

Therefore, FBRX will likely remain near the $77 level until the takeover completes. 

Investors should also note that Wall Street firms had a consensus "Strong Buy" rating on FBRX stock with a mean price target of $68 heading into July 27. 

This means that analysts did not expect Forte Biosciences to trade at the price at which it is currently as a standalone company. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com