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


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.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: AKRX , HITK

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