Sector Update: Healthcare

By Staff,

Shutterstock photo

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 losing 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 Nasdaq, Inc.

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

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

More from MT Newswires


MT Newswires

MT Newswires

Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by