Updated from 6:40 p.m. ET to include BioSante Pharmaceuticals..

NEW YORK ( TheStreet) -- Shares of Novellus Systems ( NVLS) rose in late trades on Wednesday after the company agreed to be acquired by Lam Research ( LRCX - Get Report) for $3.3 billion in stock.

The deal values Novellus shares at $44.42 each, a premium of 28% to the regular-session close at $34.70. The stock was last quoted at $38.25, up more than 10%, on volume of less than 50,000 before trading was halted.

Lam is swapping 1.125 shares for each Novellus share. It expects the deal, which is projected to close in the second calendar quarter of 2012, to add to its adjusted earnings within a year of the transaction's close.

Shares of Lam Research were last quoted at $38.50, down 2.5%, on volume of more than 60,000 in extended trades.

The news prompted buying in a number of other chip testing and fabrication companies, namely KLA-Tencor ( KLAC - Get Report), up 2.5% to $47.30 on volume of more than 100,000; and Teradyne ( TER - Get Report), gaining 5.5% to $13.59 on volume of nearly 500,000.

Verifone Systems

Shares of VeriFone Systems ( PAY) edged lower in late trades after the San Jose, Calif.-based electronic payment technology company gave a below-consensus profit outlook for its fiscal first quarter.

The company said it expects non-GAAP earnings of 50 to 52 cents a share in the three months ending in January on revenue of between $415 million to $420 million. That view is below the current average estimate of analysts polled by Thomson Reuters for a profit of 53 cents a share in the January quarter on revenue of $408 million.

For the whole of fiscal 2012, however, VeriFone forecast an adjusted profit of $2.53 to $2.60 a share on revenue ranging from $1.90 billion to $1.92 billion. Wall Street's current consensus estimate is for full-year earnings of $2.49 a share on revenue of $1.73 billion.

The stock was last quoted at $40.06, down 1.2%, on volume of less than 40,000, according to Nasdaq.com. Based on Wednesday's regular session close at $40.55, the shares are up more than 11% so far in 2011.

Wall Street was split on the company ahead of the report of six of the 11 analysts covering the shares at either strong buy (5) or buy (1), and the remainder at hold (5).

BioSante Pharmaceuticals

Shares of BioSante Pharmaceuticals ( BPAX) plunged in late trades after the company reported disappointing late-stage trial results for LibiGel, its proposed treatment for hypoactive sexual disorder in post-menopausal women.

The company said LibiGel missed the both the co-primary and secondary endpoints of two Phase III efficacy trials. The stock was wiped out in the extended session, plummeting nearly 75% to 56 cents on volume of more than 7.5 million.

"We have been committed to LibiGel for many years and we are committed to determining the future of LibiGel," said Stephen Simes, the company's president and CEO, in a statement. "We will continue to analyze the efficacy trial data fully and determine plans for our next steps in the LibiGel development plan, and provide an update at a later time."

Although the stock lost 15% in Wednesday's regular session, BioSante shares were still up 50% so far in 2011 prior to the after-hours destruction.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to: tips@thestreet.com

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.