Chindex (CHDX) spiked to a five-year high of $19.71 on Tuesday after the announcement that TPG and Shanghai Fosun Pharmaceutical would acquire the drug manufacturer. The deal is worth $369 million, and the consortium will pay $19.50 per share in cash for Chindex. Founder and Chief Executive Officer Roberta Lipson will stay on as CEO after the deal. The deal should give TPG and Fosun a foothold in China's private healthcare sector, which has been growing quickly as the Chinese government invests in it to alleviate pressure on public hospitals and to drive down prices through more competition in the market.
U.S. stock futures are flat; Actavis reportedly in talks to buy Forest Labs for $25 billion; Coca-Cola and Duke Energy to report earnings on Tuesday; profit at BHP Billiton rises.
Chindex International (Nasdaq:CHDX) has been downgraded by TheStreet Ratings from from a buy to hold.