Bayer AG is trading down 5.09% at 47.29

Bayer AG on Thursday said it acquired U.S.-based biopharmaceutical company Vividion Therapeutics for up to $2 billion to boost its ability to discover new treatments and lift the value of its drug pipeline.

The deal, expected to close during the third quarter, includes a $1.5 billion upfront payment, as well as possible milestone payments of up to $500 million, the agriculture and pharmaceuticals group, said in a statement.

“Identification of drug candidates for proteins that are considered undruggable is a great challenge in drug discovery,” Bayer said.

“Vividion’s technology is the most advanced in the industry, and it has demonstrated its ability to identify drug candidates that can target challenging proteins,” Bayer board member Stefan Oelrich said.

About 90% of proteins that cause diseases cannot be targeted by current therapies, Vividion CEO Jeff Hatfield said.

On technical fronts Bayer AG RSI stood at 27.99 and currently stock is trading below all Moving Average. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : Bayer AG – SELL: 47.29, TARGET: 46.28, STOP LOSS : 48.92