CV Therapeutics Takeover Speculation Overshadows Earnings News

Shares of CV Therapeutics Inc. (CVTX) are slumping, and on Tuesday were down $.60, or 5.52%, to $10.26 on moderate volume. It's been a volatile ride for the stock which continued Tuesday morning after the company posted a smaller net loss of $39 million, or $0.66 cents per share that was better than expected. But, reported sales of its Ranexa drug that rose to $15.3 million for the quarter were disappointing.

The red ink continues to raise doubts over whether the company can continue to stand on its own two feet without a quick turnaround. But there is hope. The earnings news was rather bleak, but it overshadows the fact that on Monday, CV Therapeutics hired Lehman Brothers Vice Chairman Frederick Frank to counsel the company on a range of strategic opportunities.

It's been rumored for a while now, especially since Dan Loeb's Third Point came aboard and bought some stock, but now the company has made it official; it's on the sale block. That should make short sellers, who are short 19.86 million shares, or about 33% of the float, a bit nervous.

It's anyone's guess what premium CV Therapeutics could fetch, but there is still value to be found in Ranexa, Regadenoson and other drugs in the company's pipeline.

CVTX 1-yr chart: