Biogen stock surges after report of talks to be bought by Samsung in a deal that could be valued at more than $40 billion

Shares of Biogen Inc. BIIB, +9.26% shot up 8.9% in afternoon trading Wednesday, after the Korea Economic Daily reported that the U.S.-based drug maker is in talks to be acquired by South Korea-based conglomerate Samsung Group in a deal that could value Biogen at roughly $42 billion. That would represent an 11% premium to Biogen’s current market capitalization of about $37.88 billion. Citing investment banking sources, the report said Biogen had approached Samsung about a deal to sell its shares, in a deal valued at more than 50 trillion won. Back in 2011, Samsung and Biogen had agreed to form a joint venture to develop bio-pharmaceuticals. Biogen’s stock has gained 5.0% year to date, while the SPDR Health Care Select Sector ETF XLV, +0.54% has rallied 24.5% and the S&P 500 SPX, +0.13% has advanced 27.6%.