Healthcare Stocks in Decline; Akorn, High-Tech Pharmacal Both Rise in Deal Seen Immediately Lifting EPS

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Top Healthcare Stocks

JNJ -1.09%

PFE +0.04%

ABT -1.22%

MRK -1.08%

AMGN -3.49%

Healthcare stocks are lower, with the NYSE Healthcare Sector Index losing 1.3% and shares of healthcare companies in the S&P 500 dropping 1.4% as a group.

In company news, Akorn Inc. ( AKRX ) is up nearly 10% at $18.05 a share, earlier rising to a new 52-week high of $18.97 after announcing a $640-million buyout offer for Hi-Tech Pharmacal Co. Inc. ( HITK ).

The deal calls for HITK shareholders to receive $43.50 for each of their shares - a 23.5% premium over Monday's closing price for the stock. HITK shares are up 22.2% at $43.04 apiece this afternoon.

AKRX said it is expecting between $15 million to $20 million in annual run-rate synergies within 12 months of closing. The combined companies are expected to generate over $500 in annual sales with the deal expected to add to non-GAAP per-share adjusted earnings immediately after closing.

In other sector news,

(+) CPRX, (+48.2%) Said Firapse, its experimental treatment for patients with Lambert-Eaton Myasthenic Syndrome was designated as a Breakthough Technology by the U.S. Food and Drug Administration.

(-) ACUR, (-18.2%) Said a pain-killer using its new abuse-deterent technology did not make a statistically significant difference in reducing recreational use of the drug during Phase II testing. Firm now expects to delay its FDA submission for Aversion H&A.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: AKRX , HITK

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