Encysive (ENCY) rose 5% after the struggling drug developer hired Morgan Stanley to help it seek out strategic alternatives, which Wall Street takes as a sign the company is for sale.
The news comes after repeated setbacks at the Houston-based company in its bid to secure Food and Drug Administration approval of its Thelin drug for pulmonary arterial hypertension. The company has received three approvable letters indicating the drug could be cleared given additional data supporting its use, but the company hasn't secured final approval. Meanwhile rival
has gotten FDA clearance to sell its competing drug, which is called Letairis.
Encysive rose 9 cents to $1.70.