Sector Update: Healthcare

By Staff,

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Healthcare shares are mixed in pre-market trade. Akorn, Inc. ( AKRX ) shares are up 5.5% after it says it signed a definitive agreement to acquire Hi-Tech Pharmacal Co., Inc. ( HITK ) for $640 million in cash. Under the terms of the agreement, Akorn will pay $640 million in cash, or $43.50 per share. This represents a 23.5% premium over the closing price on August 26. HITK shares are soaring 22% at $42.85.

Akorn expects to achieve between $15 million and $20 million in annual run-rate synergies within 12 months of close. The combined company is expected to have annual revenues in excess of $500 million and the transaction is expected to be accretive to Akorn's non-GAAP adjusted earnings per share immediately upon closing.

Volcano ( VOLC ), a developer and manufacturer of precision guided therapy tools for the diagnosis and treatment of coronary and peripheral vascular disease,has signed an agreement to acquire the Pioneer Plus diagnostic ultrasound transducer and percutaneous catheter from Medtronic Inc. ( MDT ). The Pioneer Plus "re-entry" catheter has regulatory clearance in the U.S and Europe as well as other geographies.

The transaction is slated to close by the end of August. No additional details of the transaction were disclosed. Shares of VOLC are flat in pre-market trade; MDT is down 0.6%.

Also, China Cord Blood Corp. ( CO ) shares are unmoved at $4.27 pre-market as the company's Q1 EPS of $0.07 topped Capital IQ analyst estimates of $0.05 per share.

Revenues increased by 11.6% to RMB128.7 million, or USD$21.0 million, in line with CIQ analyst estimates.

Finally, OncoGenex Pharmaceuticals, Inc. (OGXI) has initiated the Rainier clinical trial, an investigator-sponsored, randomized, placebo-controlled Phase 2 trial evaluating apatorsen in combination with ABRAXANE and gemcitabine in patients with previously untreated metastatic pancreatic cancer.

OGXI closed down by nearly 2% to $9.01 on Monday, within a 52-week range of $8.52 - $14.78.

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

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

This article appears in: Investing Commodities
Referenced Stocks: AKRX , CO , HITK , MDT , VOLC

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