With volatility increasing there were many stocks that posted big moves last week, here are five stocks that were notable.
Global Traffic Network (GNET) jumped 18% after it agreed to be bought out for $14 a share. The company announced that it has entered into a definitive merger agreement to be acquired by an affiliate of GTCR, a leading private equity firm. Under the terms of the agreement, Global stockholders will receive $14.00 in cash for each share of Global's common stock, which represents approximately a 20.0% premium over the closing price on Tuesday, August 2 and a 22.7% premium based on the 60-day volume weighted average price of $11.41. The acquisition of Global will be completed through a cash tender offer for all outstanding shares of Global's common stock that is expected to commence shortly. The transaction is not subject to any financing condition. The transaction is expected to be completed by the fourth quarter of 2011.
Dendreon (DNDN) tumbled 66% after the company reported weak Provenge sales. The company said that the primary issue affecting the dynamics of its launch is the reimbursement knowledge around Provenge. Dendreon said that it anticipates the positive National Coverage Determination (NCD) and Q-code will have a significant impact on increased physician adoption. However, the firm believes this will take time, and for the remainder of 2011, the launch trajectory will reflect a more gradual adoption of Provenge as physicians gain confidence in this positive reimbursement landscape.
Dendreon expects that adoption of the new reimbursement paradigm will take time. Accordingly, Dendreon is withdrawing its previous guidance of $350-400 million in revenue for 2011 and currently expects modest quarter over quarter revenue growth for the remainder of this year. The company expects to reduce expenses, including workforce reductions, to align with its near-term manufacturing requirements.
Insmed (INSM) fell 65% last week after it announced a clinical hold on Arikace Phase 3 clinical trials. The FDA notified the company that the agency has placed a clinical hold on Insmed's phase 3 clinical trials for Arikace (liposomal amikacin for inhalation) in Cystic Fibrosis (CF) patients with Pseudomonas lung infections and patients with non-tuberculous mycobacterial (NTM) lung disease. A clinical hold is a notification issued by the FDA to the sponsor to delay a proposed clinical trial or suspend an ongoing clinical trial. The company has been informed by the FDA that this decision was based on an initial review of the interim results of a long-term rat inhalation carcinogenicity study, recently reported to the agency by Insmed, with Arikace. In this study, rats received daily doses of Arikace by inhalation for up to two years.
The FDA has requested additional information on Arikace and data from the rat study. Insmed anticipates being able to supply the currently requested information and data within the next 30 days.
As a result of the clinical hold, the company has suspended initiation of the Arikace phase 3 clinical trial programs, including the recruitment and enrollment of patients. To date, no patients have been dosed in the pending clinical trials. The clinical hold will remain in effect at least until the FDA reviews the information and data that is provided by Insmed.
Imperial Sugar (IPSU) collapsed, falling 59%, after reporting a net loss for Q2. The company reported a loss of $1.35 per share in Q2 vs. $0.52 analyst estimate. Higher raw sugar cost which along with lower volumes reduced gross margin was the primary reason for the loss in the current quarter.
“Our inability to increase prices in the face of higher raw sugar costs because of competitive pressures from domestic and Mexican sources was the principal driver of the quarter’s disappointing results,” commented John Sheptor, president and CEO of Imperial Sugar. “Raw sugar purchased during the quarter was priced largely against the March and May futures contracts, which peaked near $40 per hundredweight prior to the USDA import quota announcement in early April. The subsequent decline in the raw sugar futures market which occurred after the quota announcement was only temporary and the raw market has rallied back to near the same level. Our raw sugar costs in the fourth fiscal quarter should see little relief, while sales prices thus far in the fourth quarter have only improved modestly.”
AgFeed Industries (OTC:FEED) fell 45% after it provided weak Q2 guidance. For the second quarter of 2011, the company expects to report revenues of approximately $84.0 million and a net loss of approximately $17 million for the three months ended June 30, 2011. This loss includes an expense of $9.2 million related to the collection of outstanding accounts receivable in the company's Chinese animal nutrition business and an additional $5.0 million of bad debt allowance to increase its bad debt provision from $1.9 million to $7.0 million. Accordingly, AgFeed expect accounts receivable to decrease by approximately $14.2 million. The operating pressures facing the company's customers has led management and the board to be aggressive in establishing reserves due to concerns regarding credit quality. The company's leadership remains committed to pursuing every available remedy to collect all amounts due.
The company also announced that it will withdraw the registration statement filed on Form F-1 relating to the spin-off of its animal nutrition business due to market conditions.