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NEW YORK (TheStreet) -- Shares of Sagent Pharmaceuticals (SGNT)  spiked 40.13% to $21.72 on heavy trading volume today after agreeing to be acquired by Nichi-Iko Pharmaceutical in a deal valued at $736 million.

The Japanese generic medicine manufacturer made an all-cash offer of $21.75 per share, representing a 40.3% premium to Sagent's closing price of $15.50 on Friday.

The transaction will grant Sagent access to Nichi-Iko's manufacturing infrastructure and quality control systems, while the agreement will raise Nicho-Ikto's portfolio in the generics market, according to a company statement.

The deal is expected to close in the second quarter of the fiscal year ending March 2017, subject to regulatory approvals. 

About 18.76 million shares of Sagent were traded today, well above its average trading volume of roughly 437,051 shares per day.

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Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.

Sagent's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: SGNT

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 article's author. 

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