|Active Stocks: Rockwell Medical, Covidien plc, Titan Pharmaceuticals, Tekmira Pharmaceuticals, Mylan Inc.|
|By David Fowler|
|Friday, 03 October 2014 15:21|
U.S. stocks gained after investors read a stronger-than-expected September jobs report as reassurance that economic growth remains on track but that the Federal Reserve will move slowly to raise interest rates.The Dow Jones Industrial Average was up 141 points, or 0.8%, to 16942 in midday trading. The S&P 500 climbed 18 points, or 0.9% to 1964.Riskier parts of the stock market were doing better after a sharp selloff earlier in the week. The Nasdaq Composite increased 46 points, or 1% to 4476. The Russell 2000 index of small company stocks also rose 1.2%.
Shares of thinly-traded small cap Rockwell Medical Inc. (NASDAQ:RMTI) jump on a 4x surge in volume in response to its exclusive agreement with Baxter International (BAX +1.3%) to commercialize Rockwell's hemodialysis concentrate product line in the U.S. and selected ex-U.S. markets. Under the terms of the agreement, Baxter will be the exclusive distributor of Rockwell's hemodialysis concentrate and ancillary products in the selected territories an an initial term of 10 years. Baxter can extend the agreement for two additional five-year terms if it meets certain sales targets and pays Rockwell $7.5M for the first extension. It must also meet minimum annual purchase levels in order to maintain exclusivity.
Shaking off the potential flak from Uncle Sam for using its foreign cash to buy Covidien plc (NYSE:COV), Medtronic (MDT +3.5%) instead will rely on $16B in external financing to complete the transaction. Covidien shareholders will still receive $35.19 per share in cash plus 0.956 of an ordinary share of Medtronic.
Titan Pharmaceuticals, Inc. (OTCBB:TTNP) prices its public offering of 21M units at $0.50. Each unit consists of one share of common stock and 0.75 of a warrant. Holders of one full warrant can purchase one share of common stock at $0.60 per share. Gross proceeds of $10.5M will fund the ongoing development of Probuphine, the pre-clinical development of other ProNeura technology-based products and general corporate purposes.
In a bit of non-Ebola-related news, Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) earns a $1.5M development-related milestone from Monsanto. The work is part of a research program that Tekmira announced in January related to its proprietary delivery technology and IP for agricultural applications. The potential value of the deal could reach ~$86M if all milestones are completed.
Citing a stronger-than-expected Q3, Mylan Inc. (NASDAQ: MYL) increases its Q3 and full-year guidance. For Q3, it now expects non-GAAP EPS to be $1.12 - 1.16 compared to its previous forecast of $0.90 - 0.95. The revised guidance includes $0.14 per share from an agreement with Strides Arcolab Limited. Myan recognized earnings for lost revenues in 2014 that arose from supply disruptions due to quality enhancement efforts initiated at certain Agila locations prior to Mylan's acquisition of Agila from Strides in 2013.