Isis Pharmaceuticals ( ISIS) helped lead the after-hours winners on Monday, lately rocketing 44.7% on word of a new strategic alliance with Genzyme ( GENZ).
The companies said that Genzyme will pay more than a double premium for $150 million in Isis stock -- $30 a share, on regulatory approval -- as part of a deal in which the former will develop and market Isis' "potential blockbuster" mipomersen drug. Genzyme will also pay California-based Isis $175 million upfront for an exclusive license to the drug, a lipid-lowering treatment for high-risk cardiovascular patients that's currently in late-phase testing, in addition to "significant" potential future milestone fees. The companies will "share profits" following product launch. In the future, Genzyme will have "preferred access" to Isis drugs relating to the central nervous system, as well as for "certain rare diseases." Isis shares were surging $6.52 to $21.10 after the close. Genzyme, of Cambridge, Mass., dipped 0.8% to $76.50. Starbucks ( SBUX) was also among the late winners after the Seattle coffee shop said chairman Howard Schultz, who founded the company, will once again take the reins as CEO . He replaces the departing Jim Donald. Shultz laid out a number of plans for the company, including the slowing of U.S. store openings and an acceleration of international expansion. Shares were jumping 8.8% to $20. On the other hand, electronics retailer Circuit City ( CC) lost 4.3% after saying December same-store sales dropped 11.4% compared with last year, including a slight positive offset from an improved international showing. Total sales for the month slid 8.9% to $1.92 billion. In light of those results, the company reiterated fourth-quarter guidance for a "modest" pretax loss. Shares of the Richmond, Va., company were off 18 cents to $4.03 in recent extended trading.