NEW YORK (TheStreet) -- Shares of Raptor Pharmaceuticals (RPTP) were jumping 10.65% to $7.64 in late morning trading as Retrophin (RTRX) is considering a possible acquisition of the Norvato, CA-based biopharmaceutical company.
The San Diego-based biopharmaceutical company, founded by enterepreneur Martin Shrkeli, is exploring the deal to boost growth in rare disease treatments, Bloomberg reports. Shkreli is no longer with the company after leaving in 2014 and has since been charged by the FBI with allegedly defrauding investors in hedge funds he ran.
Raptor has also attracted interest from other drugmakers.
Retrophin recently added new managers and raised approximately $149.5 million in profits from a share sale last year to fund research and acquisitions, according to Bloomberg. The biopharmaceutical company focuses on "catastrophic" diseases, such as kidney and neurological disorders.
Raptor is currently pursuing projects dealing with Huntington's Disease and cystic fibrosis.
Shares of Retrophin were lower in late morning trading.
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. TheStreet Ratings has this to say about the recommendation:
We rate RAPTOR PHARMACEUTICAL CORP as a Sell with a ratings score of D-. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: RPTP