Healthcare Stocks Climbing Tuesday; Cadence Hits 6-Year High After Accepting Mallinckrodt Buyout Offer
Top Healthcare Stocks
Healthcare stocks are higher.
In company news, Cadence Pharmaceuticals ( CADX ) rose more than 26% this afternoon, earlier reaching a six-year high after Mallinckrodt plc ( MNK ) offered to acquire the drugmaker for $14.00 per share in cash.
The $1.3 billion tender offer represents a 32% premium over CADX's volume-weighted average trading price over the past 30 days. MNK said it expects the deal will be immediately accretive to its FY14 per-share earnings, also adding a significant boost to the company's FY15 EPS.
MNK expects to finance the transaction using cash on hand plus borrowings under its senior secured term loan facility.
CADX shares were up 26.6% at $14.02 apiece in recent trade, just a penny off its intra-day high and marking the stock's best price since late 2007. MNK was up 9.9% at $65.15 in recent trade.
In other sector news,
(+) LJPC, (+4.5%) Inks license agreement with the French National Institute of Health and Medical Research to develop hepcidin agonists, including a Phase I exploratory study in patients with transfusion-dependent anemia and severe chronic iron overload.
(-) WBMD, (-4.6%) Projected Q4 EPS of $0.23 to $0.25 trails single analyst estimate expecting $0.29 per share profit. Sees 10% increase in revenue over year-ago levels to $145.5 mln to $146.5 mln, topping Street view by at least $1.5 mln. Boosts stock buyback program by $50 mln to a total of $70 mln. Q1, FY14 revenue guidance in-line.