Why Durata Therapeutics (DRTX) Stock Hit a One-Year High Today

NEW YORK (TheStreet) -- Shares of Durata Therapeutics  (DRTX) skyrocketed to a 52-week high of $24.25 on Monday after Actavis  (ACT) agreed to purchase the pharmaceutical company for approximately $675 million.

An Actavis subsidiary will make a tender offer to buy all outstanding Durata shares at $23 a share, along with contingent value rights for Durata to receive additional cash payments of up to $5 a share if the company's lead product Dalvance, an antibiotic designed to treat skin infections, reaches certain regulatory and sales milestones.

Actavis expects the purchase to be accretive by the end of the first year of the acquisition.

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The stock was up 69.67% to $23.55 at 10:22 a.m. More than 3.3 million shares had changed hands, compared to the average volume of 335,844.

DRTX Chart DRTX data by YCharts

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