NEW YORK (TheStreet) -- Shares of Medicis Pharmaceuticals (MRX) were leading the small-cap action Monday after the company reached a settlement with Teva Pharmaceuticals (TEVA) to enable the latter to produce and sell generic versions of its flagship drug Solodyn from 2018. The agreement effectively protects Medicis' franchise from the onslaught of cheaper drugs for a longer period than previously expected.
Analysts at JPMorgan and Piper Jaffray upgraded the stock to overweight following the news. Shares surged 22% to $31.54 in afternoon trades. Monday's volume of 5.6 million was roughly seven times the issue's trailing three-month daily average.
PDL Biopharma (PDLI) also saw its shares pop after the company settled its legal dispute with Novartis (NVS), dismissing its claims against Novartis in a Nevada state court after Novartis agreed to withdraw its opposition appeal in the European Patent Office challenging the validity of PDL's Queen patent in Europe.
PDL also agreed to pay Novartis certain amounts based on net sales of Lucentis made by Novartis during calendar year 2011 and beyond. PDL is also taking action against Genentech and Roche (RHBBY), and the company said the settlement with Novartis doesn't affect its claims against those parties.The stock was up 17% to $5.68. PDL also said its board has adopted a regular dividend policy calling for it to make four quarterly payments of 15 cents a share each in 2011. Shares of auto parts maker Amerigon (ARGN) were jumping 12.4% to $12.99 after the company said it's acquired 75.6% of the voting shares of a publicly traded German automotive company WET Automotive Systems for € 40 a share. Amerigon also intends to make a tender offer for the remaining stake, bringing the total transaction value to € 121.6 million. Small-cap oil and gas drillers were once again dominating the list of small-cap winners, even though oil prices showed signs of stabilizing. Shares of Royale Energy (ROYL) continues to defy gravity, climbing another 18% to $5.92. The stock has more than doubled since February. Samson Oil & Gas (SSN) was another major gainer, up 11% to $3.44. Parker Drilling (PKD), Kodiak Oil & Gas (KOG) and BPZ Resources (BPZ) also gained smartly. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV