NEW YORK (TheStreet) -- Shares of ICU Medical (ICUI) - Get Report closed up 14.86% to $144.68 on heavy trading volume Thursday after the San Clemente, CA-based company agreed to buy the pharmaceutical company Pfizer's (PFE) infusion therapy business for $1 billion in cash and stock.
Pfizer will receive $600 million in cash and $400 million in newly issued shares of ICU Medical. The New York-based company will have a 16.6% stake in ICU Medical.
Pfizer's Hospira infusion systems business produces IV pumps and other devices.
The deal is expected to close in the 2017 fiscal first quarter, Pfizer said in a statement.
Additionally, ICU provided preliminary results for the 2016 fiscal third quarter.
The medical device company expects to earn $1.20 per share on revenue of $96 million. Wall Street is looking for earnings of $1.12 per share and $90.78 million in revenue.
ICU also raised its full-year guidance to $4.60 per share and $370 million in revenue.
The company is slated to report fiscal 2016 third-quarter results on Nov. 3.
About 1.21 million of the company's shares traded today vs. its average 30-day volume of 93,654 shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates ICU as a Buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and reasonable valuation levels. Although no company is perfect, currently the team does not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: ICUI