These five stocks all moved at least 10% on Friday following company announcements.
Globalstar (OTCQB:GSAT) fell 11% after the retirement of its CEO. The company announced that after the successful implementation of the strategic initiatives he introduced during his tenure, the company has accepted Chief Executive Officer Peter Dalton's request to retire. Executive Chairman and former Globalstar CEO Jay Monroe will immediately resume his operational role as CEO on an interim basis and Mr. Dalton will remain as a special advisor to the interim CEO to assist with transition issues through September 1, 2011. Mr. Dalton is also retiring as a member of Globalstar's Board of Directors. Globalstar has initiated a search for a permanent replacement for Mr. Dalton.
ISTA Pharmaceuticals (ISTA) tumbled 31% after its Phase 3 trial did not meet its primary endpoint. ISTA announced top-line results from the first of its two Phase 3 studies to evaluate the short-term safety and efficacy of two concentrations of REMURA (bromfenac ophthalmic solution for dry eye) in alleviating the signs and symptoms of dry eye disease. The company's Phase 3 safety and efficacy program, which consists of two studies known as EAST and WEST, is being conducted under a Special Protocol Assessment (SPA) agreed upon with the FDA. The top-line results are from the WEST study; the EAST study is now fully enrolled and the company expects to announce top-line results from the EAST study during fourth quarter of 2011.
According to preliminary analysis of the top-line results from the WEST study, while REMURA was highly effective in treating a sign and symptom of dry eye, it was not statistically significantly better than placebo, a common outcome reported in studies testing other dry eye therapies. From baseline, both concentrations of REMURA and the placebo showed highly statistically significant improvement (p < 0.0001) in one sign and one symptom. The co-primary end-points identified in the SPA require REMURA to achieve a statistically significant difference from placebo, not baseline, which was not achieved in the WEST Study.
In analyzing the patient data, the higher concentration of REMURA achieved statistical significance against placebo in the sign of conjunctival staining as measured using the Lissamine Green Staining test among a sub-population of female patients 51-70 years of age with moderate dry eye disease. Safety data demonstrated REMURA was well-tolerated, with an adverse event profile similar to placebo and consistent with those observed previously with REMURA in a Phase 2 study and with other prescription dry eye drops. All three formulations were rated by patients as very comfortable.
Allied Healthcare International (AHCI) jumped 56% after it agreed to be acquired for $3.90/share. The company announced that it has entered into a definitive agreement to be acquired by Saga Group Limited for $3.90 per share, which represents a premium of 59% to Allied's closing price on July 28, 2011 of $2.45. The aggregate purchase price for all outstanding shares of Allied common stock, including outstanding options, will be approximately $175 million.
The terms of the agreement were unanimously approved by Allied's board of directors. The transaction is not subject to a financing condition. Completion of the transaction is subject to the approval of Allied's shareholders and certain other terms and conditions customary for transactions of this type, including regulatory approvals. Completion of the transaction is expected to occur in the fourth calendar quarter of 2011.
Acorn Energy (ACFN) climbed 19% after it agreed to sell one of its subsidiaries for $101 million. The company announced it has entered into a definitive agreement to sell its CoaLogix subsidiary for $101 million to funds managed by Energy Capital Partners ("ECP"), a private equity firm focused on the energy infrastructure industry. Acorn Energy owns approximately 65% of CoaLogix on a fully diluted basis, with the balance held by EnerTech Capital and CoaLogix management.
CoaLogix is the worldwide leader in SCR catalyst and regeneration technologies which reduce NOx for coal-fired electric utility power plants. Approximately $1.5 billion of catalyst is currently installed in the SCR systems of U.S. coal-fired utility plants. CoaLogix provides innovative, cost-effective solutions that help customers achieve and maintain compliance with increasingly stringent environmental regulations.
Acorn anticipates that its proceeds from the sale of CoaLogix will be approximately $61.8 million pre-tax (approximately $3.53 per outstanding Acorn share). Acorn anticipates that its taxes on income for 2011, after giving effect to the transaction, will not exceed $5 million.
Sify Technologies Limited (SIFY) jumped 22% after it posted strong Q2 results. Sify reported revenues of $50.73 million for the quarter ended June 30, 2011, about 31% higher than the corresponding quarter of previous year. Growth was driven by revenues from Enterprise services which grew 40% over the corresponding quarter previous year: this included a $10.3 million project executed for a large telecom company. Net loss before tax for the quarter was $1.91 million, as against a net loss of $4.05 million in the corresponding quarter previous year.