Shares of Momenta Pharmaceuticals ( MNTA) soared 38% to $18.01 after the company signed an exclusive collaboration agreement with Sandoz, the generic-drug business of Novartis ( NVS). The agreement calls for the companies to develop generic versions of four previously approved drugs. Momenta will receive an initial payment of $75 million in exchange for roughly 4.7 million shares priced at $15.93 each. Pending the achievement of certain milestones, Momenta could receive up to $188 million in additional payments. Steel Technologies ( STTX) advanced after the company posted quarterly net income of $6.6 million, or 50 cents a share, up from $5.7 million, or 43 cents a share, a year ago. Results for the third quarter included a tax benefit of 6 cents a share. Income from continuing operations totaled $6.7 million, or 51 cents a share. Sales from continuing operations fell to $234.5 million from $243.7 million in the year-earlier period. Shares of Steel Technologies gained $3.31, or 18.5%, to $21.22. DXP Enterprises ( DXPE) saw its shares jump 24% after its second-quarter earnings nearly doubled year over year. The company had net income of $2.95 million and 51 cents a share in the quarter, compared with $1.48 million and 26 cents a share a year ago. Sales increased 53.5% to $69.8 million. Shares of DXP, a provider of pumping products and maintenance, repair and production services, surged $6.07 to $30.67. Telular ( WRLS), a designer of wireless products, was rising following news the company received orders and awards totaling $21.3 million. The agreements are with Latin American wireless network operators in El Salvador, Guatemala, Mexico, Panama and Venezuela. Shipments began in the fiscal third quarter this year and will continue through the first quarter of fiscal 2007. Telular's shares were higher by 37 cents, or 18.5%, at $2.37. Global ePoint ( GEPT), a developer of security technologies, dropped after saying it received a letter from the staff of the Nasdaq Stock Market indicating that its shares could be delisted.
The Nasdaq's letter related to some of the company's financing arrangements. The company plans to appeal and believes it should remain listed on the Nasdaq. However, there can be no guarantee that a listing panel will agree, or that Global's shares will remain listed in the future. Global was losing 36 cents, or 28.6%, to 90 cents. Tegal ( TGALD) sank after the designer of systems used in making integrated circuits said it was undertaking a 1-for-12 reverse stock split. The purpose of the reverse split is to increase the per-share market price of Tegal's common stock in order to regain compliance with the Nasdaq's minimum bid price requirement and to encourage investor interest in the company. Shares of Tegal were falling 88 cents, or 18.5%, to $3.68.