Markets

Health Care Sector Update for 01/09/2017: ARIA,ETRM,AMAG

Top Health Care Stocks

JNJ +0.19%

PFE +0.19%

MRK +0.07%

ABT +1.55%

AMGN +1.23%

Health care stocks were posting moderate gains during afternoon trade, with the NYSE Health Care Index increasing about 0.5% while shares of health care companies in the S&P 500 also were up about 0.5% as a group.

In company news, Ariad Pharmaceuticals ( ARIA ) Monday was ending just under its best share price since March 2000 after the oncology-drug company agreed to a $5.2 billion buyout offer from Japanese rival Takeda.

Under terms of the proposed transaction, Takeda would pay $24 per share in cash, or just under 75% over Friday's closing price of $13.75 a share. Takeda described the deal as "compelling," saying it believed the acquisition would immediately increase its net income and revenue after closing, including Ariad's prior guidance expecting between $170 million to $180 million in revenue during 2017 from sales of its Iclusig cancer medication for adults with a certain abnormal gene.

The companies are expecting to complete the deal by Feb. 28.

ARIA shares were up almost 73% at $23.74 apiece, or just 7 cents under a nearly 17-year high of $23.81 a share.

In other sector news,

(+) ETRM, Files amended S-1 registration statement, reducing the number of Class A units to be offered by 31% to 604,535 units and all but 9,600 Class B units compared with 3.25 mln in original prospectus.

(-) AMAG, Agrees to pay $60 mln upfront payment to Palatin Technologies ( PTN ) in exchange for exclusive North American rights to commercialize Rekynda, a prospective treatment for hypoactive sexual desire disorder in adult women.

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

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