Chiesi Group to Acquire KalVista Pharmaceuticals in Cash Deal

KalVista Pharmaceuticals shares surged nearly 39% on Wednesday following the announcement that Italy-based Chiesi Group will acquire the biotech firm for $27 per share in cash. The stock closed at $26.67, reflecting investor confidence in the deal's completion and the valuation premium. The acquisition integrates KalVista's specialized oral therapies for rare diseases into Chiesi's broader international portfolio. A central asset in the deal is EKTERLY, an oral medication for hereditary angioedema—a condition affecting approximately 1 in 50,000 people—which received regulatory approval in July 2025. Trading activity for KalVista exploded on the news, with volume hitting 69.4 million shares, representing a massive 3,323% increase over its three-month average of 2 million shares. The deal provides a significant exit for shareholders and shorts, as the company had previously seen a 66% decline since its 2015 IPO and maintained a high short interest of 40%. While the broader indices remained flat—with the S&P 500 slipping 0.02% and the Nasdaq Composite gaining 0.04%—the biotechnology sector saw mixed reactions. Competitors like Prothena fell 5.56% as investors recalibrated risk assessments across rare-disease pipelines. Chiesi's global scale is expected to accelerate the commercial reach of EKTERLY, which has only reported three quarters of revenue to date.