Shares of Mallinckrodt Public Limited Co. (MNK, Financial) traded more than 3% higher on news that the company will pay $18 per share in cash for Sucampo (SCMP, Financial) on a deal valued at $1.2 billion. After the acquisition, Mallinckrodt expects EPS accretion of a minimum of $30 cents for next year, and more than $60 cents in 2019. Sucampo´s stock jumped about 6% after the $840 million (£628.8 million) news. Sucampo is working on drugs to combat two rare genetic diseases, with a potential high price if successful.
Moreover, shares of DelMar Pharmaceuticals Inc. (DMPI, Financial) traded higher more than 23% after the announcement that the U.S. Food and Drug Administration (FDA) has granted cancer treatment “Fast Track” designation for VAL-083, in recurrent glioblastoma (rGBM).
Saiid Zarrabian, company´s interim CEO, said "The Fast Track designation marks an important milestone in the development of VAL-083 as a potential new therapy for cancer patients with limited or no treatment options." He added, "We appreciate the FDA's recognition that the VAL-083 program addresses a significant unmet need in rGBM as we continue to evaluate this agent in patients with multiple tumor types."
Small-cap stock Knoll Inc. (KNL, Financial) traded higher 5% after analysts at Raymond James are more bullish on the company, as they raised their price target $26 from $23, and raise the rating to “Strong Buy” from “Outperform.” Two weeks ago the company entered into an agreement to acquire Muuto, the Copenhagen-based designer and provider of affordable luxury furniture, lighting and accessories.
Other company that was upgraded by Raymond James was Herman Miller Inc. (MLHR, Financial) to “Outperform” from “Market Perform.” Further, it raised its price target to $43, a 9.2% upside movement from current price.
Stitch Fix Inc. (SFIX, Financial) traded more than 10% higher on Tuesday, reaching a new all-time intraday high. Today´s rally offset the decline experimented the past week after it reported its first quarterly earnings as a public company. From mid-November, time when the online clothing retailer went public, shares were up 86% from their IPO price of $15.
Disclosure: The author holds no position in any stocks mentioned.
