Why did Enzo Biochem (ENZ) stock increase by 72% today?
Enzo Biochemistry (NYSE:ENZ) the stock soars on Friday after the company agreed to an asset sale with Labcorp (NYSE:HL).
This sale of assets led Enzo Biochem to agree to sell its clinical laboratory division to Labcorp. Neither company says how much was spent by Labcorp to acquire clinical laboratory assets from Enzo Biochem.
What Enzo Biochem says is that this decision is part of its targeted return initiative. It is the company’s plan to focus more on the life sciences sector to maximize the value of ENZ shares.
Hamid Erfanian, CEO of Enzo Biochem, said the following about the deal:
“We are very grateful to all of our colleagues who have made Enzo Clinical Labs a trusted source for patient care. With proven expertise in clinical laboratory services and products, Labcorp is uniquely positioned to take these operations to new levels of dynamism and success.
Movement of ENZ shares on Friday
News of the asset sale got investors excited for ENZ shares today. This has resulted in strong trading in the company’s shares, with some 1.6 million units in motion at the time of this writing. To put that into perspective, the company’s average daily trading volume is closer to 68,000 shares.
ENZ stock rose 72.2% in premarket trading on Friday.
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As of the date of publication, William White had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.