89bio (ETNB) said Thursday it has agreed to be acquired by Roche for $2.4 billion, or a price of $14.50 per share in cash, a premium of about 79% above its closing Wednesday stock price.

Under the deal, stockholders of 89bio will receive a non-tradeable contingent value right to receive contingent payments of up to an aggregate of $6 per share in cash on achievement of specified sales milestones, bringing the total transaction equity value to up to approximately $3.5 billion.

In connection with this, an affiliate of Roche will commence a tender offer to acquire all of 89bio's outstanding shares at closing.

The deal is set to close in Q4, subject to certain closing conditions. Until that time, 89bio will continue to operate as a separate and independent firm.

Shares of the company were up more than 85% in recent premarket activity Thursday.

Price: 15.00, Change: +6.92, Percent Change: +85.64