Health Winners & Losers: Sciele Pharma
09/02/08 - 04:43 PM EDT
Elizabeth Trotta
A few acquisitions shook biotech stocks on Tuesday, while others traded on regulatory news and clinical discussions.
Japanese company Shionogi & Co. said it plans to buy the remaining outstanding shares of Sciele Pharma (SCRX Quote - Cramer on SCRX - Stock Picks) in an all cash tender offer of $31 a share, a 57% premium to the stock's closing price Friday. The deal has a total equity purchase price of roughly $1.1 billion, valuing the company at approximately $1.4 billion, and is expected to close in the fourth quarter. Sciele shares rose $11.40, or 59.2%, to $30.67. Novacea(NOVC Quote - Cramer on NOVC - Stock Picks) shares declined 57 cents, or 24.3% to $1.78 after the company said it would be acquired by privately owned Transcept in an all-stock transaction. Novacea shareholders will own 40% of the new, combined company, which will be named Transcept Pharmaceuticals and is expected to be listed on Nasdaq under a different ticker symbol. The deal is expected to close during the fourth quarter of 2008 or the first quarter of 2009. Introgen(INGN Quote - Cramer on INGN - Stock Picks) dropped 38.7% on Tuesday after the company said the Fodd and Drug Administration deemed incomplete its application for cancer-drug hopeful Advexin. Shares fell 36 cents to 57 cents.
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